Further re. Convertible Unsecured Loan Notes

RNS Number : 9804I

Vela Technologies PLC

30 November 2018

 

30 November 2018

Vela Technologies plc

("Vela", the "Company" or the "Group")

Further re. Convertible Unsecured Loan Notes

Further to its announcement on 1 October 2018, the Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, provides the following update in respect of the £400,000 Convertible Unsecured Loan Notes (the "Loan Notes") that were issued in October 2016. The Loan Notes are held equally by Antony Laiker (a director of the Company) and Scott Fletcher (a significant shareholder of the Company as defined by the AIM Rules for Companies).

Under the terms of the loan note agreement the Loan Notes were repayable on 30 September 2018 (the "Repayment Date") or capable of conversion into new ordinary shares in the Company, at a price of 0.15 pence per share, at any time up until the Repayment Date. The Loan Notes carry an annual interest rate of 8 per cent. The terms of the Loan Notes also provided for the Repayment Date to be capable of extension with the agreement of the Loan Note holders. Further details on the terms of the Loan Notes are included in the announcement released by the Company on 9 September 2016.

The Company has entered into an agreement on 29 November 2019 with each of Antony Laiker and Scott Fletcher to extend the repayment date of the Loan Notes (the "Extension Agreement"). Other than the Repayment Date of the Loan Notes being extended to 30 September 2019, all other terms of the Loan Notes remain unchanged.

Antony Laiker is a director of the Company and is therefore a related party as defined by the AIM Rules for Companies. Accordingly, the entering into of the Extension Agreement by Antony Laiker and the Company constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The independent director, being Brent Fitzpatrick, having consulted with the Company's nominated adviser, Allenby Capital Limited, considers the terms of the Extension Agreement entered into by Antony Laiker to be fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact: 

Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman Antony Laiker, Director Tel: [phone] Allenby Capital Limited (Nominated Adviser) Nick Athanas/Asha Chotai Tel: [phone] Smaller Company Capital Limited (Broker) Rupert Williams/Jeremy Woodgate Tel: [phone]

 

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