Issue of Equity and Loan Agre

RNS Number : 4072A

Symphony Environmental Tech. PLC

01 August 2008

 



1st August 2008

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC

ISSUE OF EQUITY

HEADSTART CONVERTIBLE LOAN VARIATION

TOTAL VOTING RIGHTS

Symphony Environmental Technologies Plc ('Symphony' 'Company' or 'the Group'), the degradable plastics and waste-to-energy Group, announces that further to the convertible loan facility agreement announced on 15 December 2006 and the variation agreement ('Variation Agreement 1') announced on 15 May 2008 with Headstart Global Fund Limited and Headstart Global Aggressive Fund Limited (together 'Headstart') a further agreement ('Variation Agreement 2') has been reached with Headstart. 

The terms of Variation Agreement 1 stipulated that Symphony could repay the outstanding loan capital and accrued interest by 30 July 2008.  In the event that the loan was not discharged by this date it was agreed that Headstart might resume conversions on 31 July 2008, and further, that a 5% fee would be added to the outstanding loan balance.

Additionally, Variation Agreement 1 provided that in consideration for Headstart agreeing to issue no further conversion notices until 30 July, Symphony would pay to Headstart the sum of £50,000. 

Variation Agreement 2 extends the period in which Symphony will discharge the loan to 30 March 2009. Additionally on 5 August 2008 Symphony will pay to Headstart the fees as detailed above, accrued, interest and an additional fee of 5% of the current £380,000 capital balance, which is consideration for Headstart agreeing not to issue further conversion notices until 3 November 2008. 

Symphony is discharging its obligations as to fees, and accrued interest as detailed above, and is further reducing  the size of the Company's obligations to Headstart, Symphony has for that purpose placed 3,500,000 new ordinary shares of 1p each (the 'Placing Shares') to a number of investors at a price of 4p per share (the 'Placing') raising £140,000. A major shareholder, Hunter Hall, has continued to show its support for Symphony by purchasing 825,000 new shares as part of the Placing.

Application has been made for the Placing Shares, which will rank pari passu with the existing ordinary shares in issue, to be admitted to AIM. It is expected that admission will be effective and dealings in the Placing Shares will commence on 7 August 2008.  

For the purpose of the Financial Services Authority's Disclosure and Transparency Rules, the total issued share capital in the Company at the date 

of this announcement consists of 108,719,036 ordinary shares of 1p each, each carrying the right to one vote.

The total number of voting rights in the Company is therefore 108,719,036.

The above figure may be used by shareholders as the denominator for the calculations by which they will 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 Disclosure and Transparency Rules.

For further information, please contact:

Symphony
Michael Laurier, CEO	Tel: [phone]
Ian Bristow, FD
HB Corporate
Rod Venables	Tel: [phone]

Further information on the Symphony Environmental Technologies Group of companies:

SYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC is a world leader in oxo-biodegradable plastic technology. The technology is recognised by the d2w® droplet logo on thousands of tonnes of oxo-biodegradable plastic products. In the last 12 months enough d2w® pro-degradant additive has been supplied to make more than 5 billion plastic products 

Symphony has a diverse and growing customer base and has successfully established itself as an international business. Its d2w® products can already be found in more than 50 countries around the world. Symphony is proud to be a member of the Oxo-biodegradable Plastics Association (www.biodeg.org).

Symphony is also developing innovative waste-to-energy technology and cost-effective processes to convert plastics, tyres and other waste-streams into valuable products.  

Further information on the Symphony Group can be found at www.degradable.net

 

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