Immediate Release: 14 September 2006
BUCKLAND GROUP PLC
("Buckland" or the "Group")
Issue of Loan Notes
Buckland, the AIM listed manufacturer of gas ignition components, announces
that it has completed a private placing of £ 125,000 of convertible loan notes
(the "notes"). The notes, which are unsecured, pay interest at the rate of 12%
per annum, are unlisted and are redeemable at par for cash on 31st March 2008
if not converted prior to that date. At the option of the note holders, the
notes are convertible in whole or in part into Buckland 0.01p ordinary shares
at the conversion price of 0.1p per share, at any time between 1st September
2007 and 31st March 2008.
£ 92,500 of the notes have been subscribed by private investors and £ 32,500
have been subscribed by two directors of Buckland, being Patrick Rogers
(Chairman) and Lee Sharples (Non Executive Director).
The proceeds of the issue will be used to provide additional working capital
for the Group following the transfer of all its manufacturing activities to
Thailand earlier this summer.
The directors of Buckland (other than the directors involved in the
transaction) consider, having consulted with Seymour Pierce, that the terms of
the transaction are fair and reasonable insofar as its shareholders are
concerned.
The Group's interim results for the six month period ended 30th June 2006 will
be announced on 25th September 2006.
Contacts:
Patrick Rogers, Chairman
Buckland Group Plc
Tel. 077 11 420 702
Ben Simons
Hansard Group
Tel. 020 7245 1100
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