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Vycon Inc (VYCO)

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Tuesday 28 October, 2008

Vycon Inc

Financing Facility

RNS Number : 7866G
Vycon Inc
28 October 2008
 



Vycon, Inc ('the Company')


Financing Facility



Vycon, Inc today announces that three of its substantial shareholders have together made a loan of US$1.0 million ('the Bridge Loan') to the Company. As announced in its interim results on 29 September 2008, the Company continues to work on plans to issue a convertible loan note ('the Convertible Loan Note'). 

The Bridge Loan is intended to convert into the Convertible Loan Note upon final closing of that Note, and will provide interim funding whilst those plans are finalised. BankInvest, Cooper Capital and the Cabayan Family Trust, each of whom are substantial shareholders in Vycon, are each contributing US$333,333 under the Bridge Loan. 


Specific terms of the Bridge Loan include:

  • term of up to 12 monthssecured by a second lien over the Company's assets; 

  • interest rate of 10% per annum, which may be paid in cash or by conversion into the Convertible Loan Note, at the option of the lender; 

  • automatic conversion into the Convertible Loan Note once the Company has raised US$3.0 million pursuant to that Note; 

  • issuance of warrants, pro-rata to each lender, to purchase an aggregate of 466,473 Common Shares at 25 pence, exercisable during the next five years.  


The Bridge Loan is a related party transaction as defined in the AIM Rules. The directors, with the exception of Jens Mathiesen and Peter Cooper (who are deemed to be involved in the transaction by virtue of their interest in BankInvest and Cooper  Capital respectively) consider, having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.


David Potter, Non Executive Chairman commented:


“I am pleased by the continued support demonstrated by our major shareholders in making this facility available. Plans for the Convertible Loan Note are progressing and we will be announcing further details shortly. It is the intention of the Board that all shareholders will be provided the opportunity to participate in the Convertible Loan Note.”
 


Enquiries:


Vycon, Inc:

Vatche Artinian                                         Tel:     001 714 308 0388

Craig Glynn                                                      001 714 386 3800


Smith & Williamson Corporate Finance Limited:

Barrie Newton                                           Tel:     +44 (0)117 376 2117

Nick Reeve                                                       +44 (0)117 376 2100

Martyn Fraser                                                    +44 (0)117 376 2062


Cardew Group:

Rupert Pittman                                          Tel:     +44 (0)20 7930 0777

Shan Shan Willenbrock


This information is provided by RNS
The company news service from the London Stock Exchange
 
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