Extension of Unsecured Convertible Loan Notes

RNS Number : 3693T

Manx Financial Group PLC

22 July 2022

 

FOR IMMEDIATE RELEASE                                                                                                      22 July 2022

Manx Financial Group PLC (the "Group")

Extension of Unsecured Convertible Loan Notes

Jim Mellon and Burnbrae Limited ("Burnbrae") have agreed to extend outstanding unsecured convertible loans of £1.7 million, due to expire on 31 July 2022, for a further five years to 31 July 2027. A loan of £1.2 million is from Burnbrae and the remaining loan of £0.5 million is from Jim Mellon himself. The new annual interest rate will be 7.5% (previously 5.0%) and the new conversion price will be 8.0 pence per share (previously 7.5 pence). All other terms are unchanged, including the ability for the Company to repay the loans at any time during the period.

The extension of the loans is a Related Party Transaction under the AIM rules as Jim Mellon is a director of the Group and indirectly wholly owns and is Chairman of Burnbrae and Denham Eke, also a director of the Group, is Managing Director. As a result, Jim Mellon, Denham Eke and Greg Bailey (who is deemed in concert with Jim Mellon) recused themselves from voting in the transaction. The Group's Independent Directors (being the Board with the exception of Jim Mellon, Denham Eke and Greg Bailey) consider, after consulting the Group's Nominated Adviser, that the terms of the loans are fair and reasonable insofar as the Group's shareholders are concerned. In reaching this conclusion the Independent Directors, having considered the most suitable method of preserving the regulatory capital funding required for the continued expansion of the Group's principal subsidiary, Conister Bank Limited, reviewed the costs and practicality of alternative third-party finance, as well as the possibility of a rights issue, and concluded that the terms for the extension were both fair and reasonable for all shareholders.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

For further information, please contact:

Manx Financial Group PLC Douglas Grant, CEO Tel [phone]

Beaumont Cornish Limited Roland Cornish/James Biddle Tel [phone]

Greentarget Limited Dafina Grapci-Penney Tel [phone]

 

END

 

 

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