Issue of Loan Notes
June 14 2010 - 2:00AM
UK Regulatory
TIDMNXS
14 June 2010
NEXUS MANAGEMENT PLC
('Nexus Management' or 'the Company')
Issue of Loan Notes and strengthening of the Company's balance sheet through
redemption of $525,000 of VPEP debt
The Board of Nexus Management Plc, the AIM quoted provider of specialist IT
Managed Services, is pleased to announce that it has raised a total of GBP225,000
($320,000 US) through the issue of convertible loan notes and conversion of
certain warrants. The proceeds will be used to repay outstanding amounts
totaling $525,000 due to VPEP Technology Corporation ("VPEP").
Issue of Loan Notes
The Company has raised GBP175,000, before expenses, through the issue of
convertible loan notes ("Loan Notes") to the SF t1PS Smaller Companies Growth
Fund ("SF t1PS").
The Loan Notes are subject to an interest rate of 10 per cent. per annum,
payable quarterly in arrears, and are convertible on the fifth anniversary of
their issue, at a price of 0.4p per share. The Loan Notes can be converted or
redeemed at any point following the third anniversary of their issue; however,
in the event the Loan Notes are redeemed they are subject to an early
redemption penalty fee of one year's interest.
Issue of warrants
The Company has also issued to SF t1ps GBP200,000 of warrants exercisable until
June 2011 at 0.35p per share ("the Warrants") of which GBP50,000 will be
exercised immediately.
Following this conversion, SF t1PS will hold 104,429,087 ordinary shares in the
Company, representing 9.5% per cent of the issued share capital of the Company.
Application will be made for 14,285,714 new ordinary shares to be admitted to
trading on AIM. Admission of such shares is expected to become effective and
dealings are expected to commence on AIM on 18 June 2010. Following the issue
of such shares, the Company will have 1,099,494,622 ordinary shares in issue.
Repayment of VPEP indebtedness
The Company has reached an agreement with VPEP to redeem outstanding amounts
due in connection with the acquisition of the assets and certain liabilities of
Scott Technology Corporation, which formed the basis of the trading operations
of Resilience Technology Corporation.
VPEP has agreed to accept a total of $335,000 in full and final satisfaction of
approximately $525,000 of debt outstanding from the Company.
Roger Richardson Nexus CEO commented "I am pleased that the Company has been
able to satisfy the debt owed to VPEP at a discount to its face value. This
enhances the balance sheet of the Company whilst also removing the potential
overhang on the Company's shares arising from VPEP's conversion rights."
-END-
Enquiries:
Nexus Management Plc Tel: 01862 812 107
Roger Richardson, Chief Executive
Merchant John East & Partners Limited Tel: 020 7628 2200
Simon Clements
David Worlidge
Bishopsgate Communications Ltd Tel: 020 7562 3350
Gemma O'Hara / Siobhra Murphy
nexus@bishopsgatecommunications.com
About Nexus Management plc
Nexus Management is a growing specialist IT Managed Services Provider. Nexus
has two key markets: the UK and the US, where it can offer its customers 24
hour support. Nexus specialises in Remote Server Management, Disaster Recovery,
Data Storage, Help-Desk, Desktop Support and Wide Area Network Management and
Monitoring - providing Enterprise calibre technical support.
Nexus is quoted on AIM, a market of the London Stock Exchange. For further
information on the Company, please visit www.nexusmgmt.com
END
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