Financing Agreement

RNS Number : 7972X

WideCells Group PLC

01 May 2019

 

1 May 2019

WideCells Group PLC ("WideCells" or the "Company")

Financing Agreement

WideCells announces that further to the Financing Agreement, announced on 27 September 2018, with European High Growth Opportunities Securitization Fund ("HGOSF"), it has today signed a deed of variation in which the two parties have agreed to set a minimum conversion price for the Bonds.

The conversion price (per Share) for the Bonds is now the greater of:

I.     £0.004 (the "Minimum Conversion Price"), or

II.    90% of the lowest closing volume-weighted average price of Ordinary Shares in the 15 trading days prior to conversion (the "Theoretical Conversion Price").

To the extent that the Theoretical Conversion Price is below the Minimum Conversion Price the shortfall in the amount converted will be settled at the time of the next tranche.

Executive Chairman, David Sefton, said: "HGOSF has been highly supportive of the new strategy, and by providing capital, has been instrumental in our ability to restructure and pay off the outstanding legacy debts in WideCells, to the benefit of all stakeholders.  We are very grateful for this support.  HGOSF has also been open to discussions on restructuring the facility and this first part provides that, in essence, HGOSF cannot convert at a price below 0.4p, therefore providing a floor on the price.  Furthermore, with its support we will look to increase this floor in the future, once the new business becomes more established. 

"With the first part of the restructuring complete, we are also discussing additional amendments to the financing structure and relationship that will reflect both HGOSF's long-term strategic support for the Company, and seek to further align the interests of all stakeholders.

"On an operational level, we are very keen to update investors on the progress of the new business since the Iconic Labs team joined and intend to do so as soon as we have resolved certain unforeseen legacy issues.  With the support of HGOSF and the new team, these issues are very close to being resolved, so we anticipate a full operational and business update in the near future." 

**ENDS**

 For further information, please visit the Company's website www.iconiclabs.co.uk or contact:

Shard Capital Partners LLP	Joint Broker - Damon Heath & Erik Woolgar	Tel: [phone]
finnCap Ltd	Joint Broker - Christopher Raggett	Tel: [phone]
St Brides Partners Limited	PR - Melissa Hancock & Juliet Earl	Tel: [phone]

 

END

 

 

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