Allotment of Shares

RNS Number : 0058E

Challenger Acquisitions Limited

13 July 2016

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

For Immediate Release

                                                                                                                                    13 July 2016

Challenger Acquisitions Limited

("Challenger" or the "Company")

Allotment of Shares

Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry announces that it has allotted 463,597 new Ordinary Shares of £0.01 each ("Shares") to the holders of convertible loan notes in payment of interest to 30 June 2016, as set out in the below table.  In respect of the Convertible Loan Notes due 2019, the Company has elected to pay seven-eighths of the interest due in the form of new Convertible Loan Notes due 2019.

Loan Note	Interest to 30 June 2016 converted into Shares	Conversion Price	Number of Shares allotted	New Loan Notes Issued
Convertible Notes due 2017 (as extended in 2016)	£84,176.34	22.20p	379,088	Nil
Convertible Notes due 2017	£6,232.88	23.64p	26,369	Nil
Convertible Notes due 2018	£9,753.42	22.01p	44,313	Nil
Convertible Notes due 2019	£2,524.71	23.64p	13,827	£17,673

Note: The calculation of the number of shares to be allotted is performed for each individual holder and rounded to the nearest whole share.  As such, there are small rounding differences in the table above.

The Company has agreed with the holder of the Convertible Notes due 2019 that Shares issued in respect of quarterly interest payments (1% of the total 8% due on the notes) will be calculated by reference to the 10-day trading average share price.  The conversion price for Convertible Notes due 2019 remains at 80p.

Conversion of Convertible Loan Notes due 2017 (as extended in 2016)

In addition, Challenger has allotted 460,824 Shares on the conversion of £91,243 of the 12% Convertible Loan Notes due 2017 (as extended in 2016).  These Shares were issued at a conversion price of 19.8p per Share.

Second Tranche of Consideration Shares

Further to the prospectus issued on 2 December 2015 ("Prospectus"), the Board has also approved the issuance of the Second Tranche of Consideration Shares.  The Second Tranche of Consideration Shares amount to 1,100,000 new Shares to be issued on the first anniversary of the Acquisition, that is on or around 15 July 2016 in accordance with the Acquisition Agreement detailed in the Prospectus.  All capitalised terms in relation to the Second Tranche of Consideration Shares are as defined in the Prospectus.

Summary

Based on the above, the Company has allotted:

·     A total of 463,597 Shares in relation to interest on Convertible Loan Notes up to 30 June 2016;

·     A total of 460,824 Shares in respect of the conversion of £91,243 of the 12% Convertible Loan Notes due 2017 (as extended in 2016); and

·     A total of 1,100,000 Shares in relation to the Second Tranche of Consideration Shares.

Application has been made to the Financial Conduct Authority ("FCA") for 2,024,421 Shares to be admitted to listing on the standard listing segment of the Official List and to the London Stock Exchange for such shares to be admitted to trading on the Main Market for listed securities.  It is expected that Admission will become effective, and dealings in the new ordinary shares will commence, at 8.00 a.m. on 18 July 2016.

Following this allotment, the total number of ordinary shares with a nominal value of £0.01 each (the "Ordinary Shares") in issue and the total number of voting rights in the Company is 16,902,189.  There are no shares held in treasury. The figure of 16,902,189 Ordinary Shares and voting rights may be used by shareholders in the Company as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information

**ENDS**

For more information visit www.challengeracquisitions.com or enquire to:

Challenger Acquisitions Limited
Mark Gustafson	[phone]
St Brides Partners Ltd (PR)
Lottie Brocklehurst, Charlotte Heap	[phone]
finnCap (Financial Adviser and Broker)
Adrian Hargrave, James Thompson, Kate Bannatyne	[phone]

Notes to Editors:

Challenger (LSE: CHAL) is focused on the design, engineering, project management and investment in select giant observation wheels.  By combining its world-class team of technical engineering and project management skills with proven international financial expertise, the Company is ideally positioned to become a leader in the giant observation wheel sector. 

The Company, which also has a ~3% equity interest in the US$500 million New York Wheel Project, is currently focusing on appraising approximately 25 opportunities in its project pipeline where it believes that it can utilise its expertise.  With a team that has worked on four of the largest giant observation wheels constructed over the last 16 years, including the iconic London Eye, the Company is building on its unique position to deliver projects and generate shareholder value.

 

END

 

 

IOEGMGMNMZZGVZZ