The Board of Nektan plc (AIM: NKTN.L), a leading international B2B mobile gaming content developer and platform provider, announces that the Company has received commitments from new and existing investors, including directors, to raise up to £2.93 million. The fundraising comprises:
- The subscription for £2.56 million of new convertible loan notes (the “CLNs”) by existing CLN holders and new investors. Subscribers to the CLN will also receive 1 warrant over a new ordinary share, at an exercise price of 81.75 pence (the “Exercise Price”), for every £1 invested in the CLN (the “Warrants”) resulting in the issue of up to 2,560,000 Warrants (the CLN and the Warrant together, the “CLN Unit”) (the “CLN Subscription”);
- A firm subscription with an institutional investor for 358,024 new Ordinary Shares at an issue price of 81 pence per share (the “Issue Price”), raising approx. £290,000. The Issue Price is equal to the closing mid-market price of 81 pence on 2 March 2016 (the “Share Subscription”, and together with the CLN Subscription, the “Subscriptions”); and
- In addition, the Board announces that the Company intends to offer up to £300,000 of CLN Units for subscription by qualifying shareholders (the “Offer”). Since a maximum of £2,643,309 is available to be issued under the current Series A 2020 Loan Note instrument, the Offer would potentially raise an additional £83,309 only and to the extent that applications under the Offer exceed this amount, the subscribers in the CLN Subscription will be scaled back.
A circular will be sent to shareholders shortly including notice of extraordinary general meeting and an application form for take up under the Offer.
The Subscriptions and the Offer are subject to the approval of shareholders, at an Extraordinary General Meeting (the “EGM”) to be held on or around 29 March 2016, of an increased authority to issue shares on a non-pre-emptive basis. However, in advance of the EGM the Company is looking to utilise up to the whole of its remaining existing shareholder authority in this regard and is in discussions with certain key investors to issue up to £550,000 of the CLNs subscribed in the next few weeks.
Jim Wilkinson, Chairman of Nektan, said: “We welcome the continued support of our major shareholders and convertible loan note holders. We have continued to make good progress on achieving cost efficiencies in the business and this fundraising puts in place additional working capital to support the strong growth we are seeing in Europe and in our US JV.”
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