Sopheon plc (“Sopheon” or “the Group”) announces that it has reached agreement with the holders of its convertible unsecured loan stock, and certain new investors, to raise an additional £1,150,000.
In 2009, the Company issued £850,000 of convertible unsecured loan stock (the “Initial Loan Stock”) to a group of investors including key members of the Board and management team, originally maturing on 2 October 2011. Since then, the holders of the Initial Loan Stock have twice agreed to extend the maturity date, most recently to 31 January 2015. The new loan stock (the “Further Loan Stock”) will have a start date of 1 October 2012, and will have the same maturity date and conversion price of 5.0p per share as the Initial Loan Stock. This is equal to yesterday’s closing mid-market price, and is above the average closing mid-market price for the last month which was 4.8p per share.
As detailed in this morning’s interim results announcement for the six months ended 30 June 2012, the Group has been advised that a change in ownership of BlueCrest Capital Finance may lead to uncertainty over future renewals of the group’s $1.25m revolving credit facility. The funds raised through the issue of Further Loan Stock will be used to mitigate this risk, and to underpin the Group’s expansion strategy.
As set out below, of the total investment in Further Loan Stock of £1,150,000, members of the Board and management or their families are subscribing for £665,000.