Conversion of Loan Notes and

RNS Number : 9649U

Braemar Group PLC

02 July 2009

 



2 July 2009

BRAEMAR GROUP PLC ('Braemar' or the 'Company')

Conversion of Loan Notes and Issue of Equity

Braemar Group plc, the AIM quoted innovative real estate fund and management group, would like to announce that it has agreed with Marc Duschenes, Chief Executive, to convert £200,000 of the convertible loan notes issued to him as part of the consideration of the acquisition of The Braemar Group Limited into equity at a price of 2.75 pence per share. This will result in 7,272,727 new ordinary shares of 1 pence each ('Ordinary Shares') in the Company being issued to Marc Duschenes. 

This conversion will also have the effect of reducing the Company's debt by £200,000; enhancing net assets by the same amount and saving interest costs of approximately £20,000 over the next 18 months.

Under the terms of the convertible loan note instrument, as set out in the admission document dated 10 November 2005 the conversation rate was set at a price of 3 pence per share with a life span of five years. After assessing the benefits of the partial early conversion on the Company's financial position, and in light of the current share price, the Directors have concluded that the variation to the original conversion rate is acceptable and in the best interests of the Company.   

The beneficial interest of Mr. Duschenes following this transaction is now 41,235,393 Ordinary Shares representing 24.00% of the total issued share capital of the Company.

With the exception of Marc Duschenes, the directors of Braemar have consulted with Zeus Capital Limited and concluded that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Braemar Group plc also announces that pursuant to an agreement with a third party, who has been promoting the Company's funds, that a further 1,066,750 new Ordinary Shares have been issued.

Application has been made for 8,339,477 Ordinary Shares to be admitted to AIM and Admission is expected to occur on or around 8 July 2009. Following admission, the enlarged issued share capital of the Company will be 172,126,380 Ordinary Shares.

For further information please contact:Marc Duschenes, CEO, Braemar Group plc 
Julie Serrage, Investor Relations, Braemar Group plc 
Tel: [phone]

Alex Clarkson/Nick Cowles, Zeus Capital Limited  
Tel: [phone]

Stuart Forshaw, Corporate Broking, WH Ireland Limited
Tel: [phone]

  Notes to Editor:

Established in 2001 and quoted on AIM in December 2005, Braemar Group plc, through its two core divisions Braemar Securities Limited and Braemar Estates (Residential) Limited, creates and manages a range of real estate investment funds.

Braemar Securities 

Braemar Securities specialises in fund raising for public and private companies. It sponsors and operates a range of property investment funds for the Group and for third parties. Braemar specialises in designing, promoting and managing innovative structured financial products and promotes its funds to high net worth individuals, via IFAs and other regulated entities.

 
Braemar Estates 

Braemar Estates is responsible for the property management for Group funds and also has a diverse portfolio of over 2,000 managed residential properties throughout the UK. Braemar has expanded this highly successful service to private developers who require effective apartment-block property management. 

Website:

www.braemar-group.co.uk

 

END

 

 

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