REG-PipeHawk Plc: Further re. Convertible Unsecured Loan Notes

PipehawkAnnouncement

09/11/2018 10:50

9 November 2018

PipeHawk plc

("PipeHawk" or the "Company")

Further re. Convertible Unsecured Loan Notes

The Board of Pipehawk provides the following update in respect of the £1
million Convertible Unsecured Loan Notes (the “CULS”) that were issued on
13 August 2010, to Gordon Watt, Chairman of the Company. On 13 November 2014,
the Company and Gordon Watt entered into an agreement to extend the repayment
date of the CULS from 13 August 2014 to 13 November 2018 and to change the
conversion price from 7p to 5p per share.

The Company announces that it has today entered into a letter of amendment to
extend the repayment date of the CULS to 13 August 2022. Gordon Watt may elect
to convert the CULS into ordinary shares, at any time prior to 13 August 2022.
Interest remains payable at a rate of 10 per cent. per annum on the principal
amount outstanding until converted, prepaid or repaid, calculated and
compounded on each anniversary of the issue of the CULS. The conversion price
of the CULS remains at 5 pence per share. On conversion of any CULS, any
unpaid interest shall be paid within 20 days of such conversion.

Gordon Watt is the Executive Chairman of the Company and is therefore a
related party under the AIM Rules. Accordingly, the entering into the letter
of amendment is a related party transaction under the AIM Rules.

The independent directors, being Soumitra Padmanathan and Randal MacDonnell,
having consulted with the Company's nominated adviser, Allenby Capital
Limited, consider the terms of the letter of amendment to be fair and
reasonable insofar as the Company's shareholders are concerned.

 Enquiries:  PipeHawk Plc Soumitra Padmanathan (Finance Director)         Tel. No. 01252 338 959  
 Allenby Capital Limited (Nomad and Broker) David Worlidge / Asha Chotai  Tel. No. 020 3328 5656  



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