Vela Technologies announces a conditional fundraising for £400,000 gross via the issue of convertible unsecured loan notes to certain shareholders, including director Antony Laiker.
The Loan Notes are repayable on 30 September 2018 and carry an annual interest rate of 8%.
"The funds raised through the issue of the Loan Notes will be used for additional working capital and to provide additional funds for the Company to make further investments in the future, in accordance with its investing policy," the company said.
The Loan Notes will be convertible into Ordinary Shares at 0.15p per share, a discount of 6.25 per cent. to the closing bid price of 0.16p per share on 8 September 2016.
The approval of Shareholders is being sought for the creation and issue of the Loan Notes. If the necessary resolutions are passed, the Loan Notes will be issued after the General Meeting.
Conditional subscriptions have been received for £200,000 of the Loan Notes from both Scott Fletcher, an existing shareholder in the Company, and Antony Laiker, a director of the Company.
At the General Meeting resolutions will also be proposed in relation to a proposed Consolidation and Sub-Division. Further details on the Consolidation and Sub-Division are detailed below.