Issue of Unsecured Convertible Loan Agreement

RNS Number : 5809P

Manx Financial Group PLC

25 October 2012

 



FOR IMMEDIATE RELEASE                                                             25^th October 2012

Manx Financial Group PLC (the 'Company')

Issue of Unsecured Convertible Loan Agreement

On 1 August 2012, the Company announced that, to support anticipated new business lending and loan book growth, it had started the process of securing additional regulatory capital.

The Company has now negotiated a further and final unsecured convertible loan note (the "Loan") on the same terms as those announced on 1 August 2012 with Southern Rock Insurance Company Limited ("Southern Rock") for £500,000. The Loan is for a period of five years, has a coupon of 7% with the conversion price set at 4 pence. The Loan will include one warrant for every £0.06 of principal loan sum advanced at an exercise price of 6 pence with a five year term.

AIM Rules

Southern Rock holds 6,750,799 Ordinary shares, representing 7.54% of the issued ordinary share capital of the Company. Mr Arron Banks, a former director of the Company, is beneficially interested in 49.96% of the issued share capital of Southern Rock and his total beneficial interest in the Company is 15,524,825 Ordinary Shares, representing 17.33% of the issued ordinary share capital. Therefore, the Loan is a Related Party Transaction under the AIM Rules. Accordingly, the directors of the Company consider, having consulted the Group's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Group's shareholders are concerned.

For further information, please contact:

Manx Financial Group plc Denham Eke Tel [phone]

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

Britton Financial PR Tim Blackstone Tel + 44 (0) 7957 140416

 

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