Issue of up to £0.35m in new convertible notes

RNS Number : 8160M

Challenger Acquisitions Limited

18 October 2016

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

For immediate release                                                                                 18 October 2016

Challenger Acquisitions Limited

("Challenger" or the "Company")

Issue of up to £0.35m in new convertible notes

Challenger Acquisitions Limited (LSE: CHAL), a leader in the Giant Observation Wheel industry, announces that it has raised up to £0.35 million by means of the issue of a new unsecured convertible note due 13 April 2018 ("Convertible Note 2018"). The Company has received £0.25 million (£0.23 million net of fees) and is scheduled to receive another £0.1 million from the investor in 30 days.

The funds raised from the Convertible Note 2018 will be used to support development of the Company's pipeline of 25 Giant Observation Wheels and for general working capital purposes.

Principal terms of the Notes

·    The aggregate principal amount of the Convertible Note 2018 is £0.35 million

·    The Convertible Note 2018 has an 18 month term

·    The Convertible Note 2018 is unlisted, unsecured, transferable and must be redeemed by the Company on 13 April 2018, in cash unless it has been fully converted by then into ordinary shares of the Company ("Ordinary Shares")

·    There are no conversions for the first 45 days

·    The maximum amount that can be converted is the greater of 15% of the daily trading volume or £10,000 per day

·    Subject to the conversion limitations noted above, the noteholder may exercise a conversion at the lower of 25p or the lowest volume weighted average price over the 5 days prior to the conversion ("Conversion Price")

·    Interest is built into the face value of the note at £1.15 per £1 of note

·    For the first 6 months, the Company can redeem in cash all or any part of the outstanding Convertible Note 2018 from the holder at the face value of the note, thereafter a 15% premium to the face value of such notes

·    The Convertible Note 2018 may be redeemed by the noteholder following certain noteholder redemption events, which include: payment default; material breach by the Company not cured within ten trading days; the Company or any of its subsidiaries suffer an insolvency event

·    The Convertible Note 2018 and related documentation are governed under the laws of England

This announcement contains inside information.

**ENDS**

For more information visit www.challengeracquisitions.com or enquire to:

Challenger Acquisitions Limited
Mark Gustafson	[phone]
St Brides Partners Ltd (PR)
Lottie Brocklehurst, Charlotte Page	[phone]
finnCap (Financial Adviser and Broker)
Adrian Hargrave, James Thompson, Kate Bannatyne	[phone]

Notes to Editors:

Challenger (LSE: CHAL) is focused on the design, engineering, project management and investment in select giant observation wheels.  By combining its world-class team of technical engineering and project management skills with proven international financial expertise, the Company is ideally positioned to become a leader in the giant observation wheel sector. 

The Company, which also has a $3 million equity interest in the US$590 million New York Wheel Project, is currently focusing on appraising approximately 25 opportunities in its project pipeline where it believes that it can utilise its expertise.  With a team that has worked on four of the largest giant observation wheels constructed over the last 16 years, including the iconic London Eye, the Company is building on its unique position to deliver projects and generate shareholder value.

 

END

 

 

MSCLIFFDIDLTLIR