Dillistone Group PLC Issue of Loan Notes (0292S)
September 28 2017 - 2:02AM
UK Regulatory
TIDMDSG
RNS Number : 0292S
Dillistone Group PLC
28 September 2017
Dillistone Group Plc
Issue of Convertible Loan Notes
Dillistone Group PLC ("Dillistone", the "Company" or the
"Dillistone Group"), the AIM quoted supplier of software for the
international recruitment industry through its Dillistone Systems
and Voyager Software divisions, is pleased to announce that it has
agreed to raise GBP400,000 through the issue of convertible loan
notes ("Loan Notes").
On 5 June 2017, Dillistone updated the market on its new product
under development ("GatedTalent"). Amongst other things Dillistone
announced that it anticipated that development, marketing and other
cash costs associated with GatedTalent in the period to 31 December
2018 would be in the order of GBP 2.4 million, excluding any
revenue generated in the period. A significant part of these costs
will be met by the Group's own cash resources, with the balance met
through appropriate fund-raising exercises.
Accordingly, Dillistone is pleased to announce today that it has
agreed to raise GBP400,000 through the issue of convertible loan
notes, which will be drawn down fully in one tranche when required
by the Company. The funds will be provided by the following
Directors and other persons discharging managerial responsibilities
("Noteholders") of the Company:
Mike Love GBP250,000
Giles Fearnley GBP75,000
Jason Starr GBP24,250
Rory Howard GBP24,250
Julie Pomeroy GBP10,000
Alex James GBP1,000
Simon Warburton GBP8,000
Paul Mather GBP7,500
The Loan Notes carry an interest coupon of 8.15 per cent pa over
their maximum term of 36 months, with a conversion price of 71.6
pence per new Dillistone ordinary share. The interest payments will
be payable quarterly in arrears and will be satisfied through the
issue of further new ordinary shares or in cash at the individual
Noteholders' election. Various rights are built into the agreement
for early repayment or conversion.
Prior to agreeing the terms of the Loan Notes, the Company had
approached various independent institutional investors. The
financial terms of the Loan Notes outlined above are equivalent to
those of the most favourable proposal received from the
institutional investors, in the Board's opinion, albeit without
non-financial restrictions sought to be placed on the wider
Dillistone Group.
The issue of the Loan Notes will constitute a related party
transaction under AIM Rule 13. Alistair Milne, who is not
participating in the Loan Notes and therefore represents an
independent Director for this purpose, having consulted with WH
Ireland, the Company's nominated advisor, considers that the terms
of the Loan Notes are fair and reasonable in so far as the
Dillistone shareholders are concerned.
The proceeds from the issue of the Loan Notes will be used, in
conjunction with existing resources, to finance the costs initially
incurred in connection with GatedTalent and will enable the Company
to raise any further funds required for GatedTalent in light of the
initial market response thereto.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Enquiries:
Dillistone Group
Plc
Mike Love Chairman 020 7749 6100
Jason Starr Chief Executive 020 7749 6100
Julie Pomeroy Finance Director 020 7749 6100
WH Ireland Limited (Nominated
adviser)
Head of Corporate
Chris Fielding Finance 020 7220 1650
Walbrook PR
Tom Cooper /
Paul Vann 020 7933 8780
0797 122 1972
tom.cooper@walbrookpr.com
Notes to Editors:
Dillistone Group Plc (www.dillistonegroup.com) is a leader in
the supply and support of software and services to the recruitment
industry. It has five brands operating through three divisions:
Dillistone Systems, which targets the executive search industry
(www.dillistone.com); Voyager Software, which targets other
recruitment markets (www.voyagersoftware.com); and GatedTalent, the
next generation executive recruitment database
(www.GatedTalent.com).
Dillistone has made three acquisitions: Voyager Software in
September 2011, FCP Internet in July 2013 and ISV Software in
September 2014. The Group operates under the FileFinder, Infinity,
Evolve, ISV and GatedTalent brands.
Dillistone was admitted to AIM, a market operated by the London
Stock Exchange plc, in June 2006. The Group employs over 100 people
globally with offices in London (head office) Basingstoke and
Southampton, Frankfurt, New Jersey and Sydney.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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