Kellan Group provides update on convertible loan notes & board composition
These were redeemable by the Company on 5 February 2015 and £811,000 of nominal unsecured convertible loan notes outstanding, convertible at 2.5 pence per share, which are redeemable by the Company on 14 February 2015 ("the Loan Notes").
The Company has reached an agreement with all holders of the Loan Notes to extend the Loan Notes for a period of two years which will now be redeemable on 14 February 2017. The interest payable by the Company to the Loan Notes holders will be 10 per cent., payable in cash bi-annually, for the year to 14 February 2016, rising to 12 per cent., payable in cash bi-annually, for the year to 14 February 2017. The Loan Notes currently have a redemption premium of 10 per cent. which has been removed to allow for early repayment by the Company without incurring a penalty during the period to 14 February 2017. £15,000 of the Loan Notes will also be repaid in full, so the total outstanding value of the Loan Notes will now be £1,346,000.
Further to the announcement made on 15 January 2015, arrangements to appoint a new CEO remain ongoing. Tony Reeves, who was due to resign on 10 February 2015, will remain as Executive Chairman pending the appointment of a new Chief Executive. A further announcement will be made in due course.