Challenger Acquisitions Limited (LSE: CHAL) announces that it has it has received £250,000 (£237,500 net of fees) from the previously announced £1,000,000 unsecured convertible note facility due 8 June 2019 (“Note Facility”). This Note Facility was announced on 13 June 2017 and restated below. In total £600,000 has now been received from this facility.
The funds received will be used for general working capital purposes and to support the Company in its review of projects to complement the Company’s US$3 million equity interest in the New York Wheel Project.
Share Talk caught up with CEO Mark Gustafson to ask questions from shareholders and find out what the management team is doing to turn the company around.
Principal terms of the Note Facility
· The aggregate principal amount is up to £1 million with a 24 month term.
· The convertible note is unlisted, unsecured, transferable and must be redeemed by the Company on 8 June 2019, in cash unless it has been fully converted by then into ordinary shares of the Company (“Ordinary Shares”).
· There are no conversions for the first 120 days, unless waived by the Company.
· The maximum amount that can be converted in any 30 day period is 20% of the principle amount, unless waived by the Company.
· Subject to the conversion limitations noted above, the noteholder may exercise a conversion at the lowest volume weighted average price over the 10 days prior to the conversion (“Conversion Price”).
· Interest is accrued at 8% per annum and payable upon conversion, at the Company’s option in:
o cash; or
o by issuing Ordinary Shares in respect of such accrued interest conversion amount at the Conversion Price.
· At any time the Company can redeem in cash all or any part of the outstanding convertible note from the holder at a 25% premium to the principal amount of such notes.
· The convertible note and related documentation are governed under the laws of England.
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