Business Update & Convertible Loan Agreement (5361R)
November 04 2011 - 8:00AM
UK Regulatory
TIDMNGG
RNS Number : 5361R
NextGen Group PLC
04 November 2011
NextGen Group plc ("NextGen" or the "Group")
Business Update and Convertible Loan Agreement of EUR650,000
The Group reports that sales in its biomarker and testing
business have been below management expectations recently but the
board are confident that the expanded strategy, as announced on 22
September, remains firmly on track and that this strategy will help
them build a scalable and successful long-term business. As a
result of the lower than expected sales, in order to continue to
fund the working capital requirements of the Group and the
investments in the Diagnostic business, NextGen has entered into a
convertible loan agreement for the provision of additional funding
of EUR650,000. The Directors believe that this additional funding
will be sufficient for its present requirements and currently
expect further funding to be required in early Q1 2012.
The convertible loan agreement is with Alpha 4 Concepts GmbH and
the terms of the loan, which is for a period ending on 31 October
2012, include a coupon of 12% pa and the loan is repayable on 7
days' notice.
The loan (plus interest) shall be convertible, at the lender's
option no later than two business days following the end of the
loan period, into ordinary shares in the Company at a price of 0.1p
per share plus one warrant for every share issued, with the
warrants being exercisable for 3 years from the date of grant.
The lender has requested that nanotecquity AG receive a
monitoring fee, payable by the Company, of EUR6,500 per month
during the period of the loan.
In addition, the Company is to pay placing commission of 7% to
OAR GmbH for its services in connection therewith.
Klaus Rosenau is a director of both nanotecquity AG and the
Company, and nanotecquity AG and the Company have 3 mutual
shareholders which between them own almost 100% of nanotecquity AG
and just under 20% of the Company. Accordingly, the payment of
commission to nanotecquity AG comprises a related party transaction
pursuant to the AIM Rules. The Directors of NextGen (other than
Klaus Rosenau), having consulted with the Company's Nominated
Adviser, Seymour Pierce Limited, consider that the payment of the
monitoring fee to nanotecquity AG, is fair and reasonable insofar
as the Company's shareholders are concerned.
For further details please contact:
Klaus Rosenau, Chairman +49 160 5516756
NextGen Group
Freddy Crossley/Nicola Marrin 020 7107 8000
Seymour Pierce Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUSOURAKAARAA
Nextgen (LSE:NGG)
Historical Stock Chart
From Sep 2024 to Oct 2024
Nextgen (LSE:NGG)
Historical Stock Chart
From Oct 2023 to Oct 2024