Release date: 14 June 2018
Embargoed until: Immediate Release
CLS Holdings plc
Proposed early redemption of
£65 million 5.50 per cent. Bonds due 2019
CLS announces that it intends to exercise its option to redeem early all of the outstanding Bonds (ISIN: XS0820711215) pursuant to Condition 5(c) of the terms and conditions of the Bonds (the "Conditions").
The early redemption of the Bonds is subject to the finalisation of certain processes including the publication of the notice of redemption which will specify the Optional Redemption Date which is expected to be before the end of July 2018. CLS will announce further details in due course.
Following the redemption, the Bonds will be cancelled and there will be no Bonds outstanding. CLS will also request the cancellation of the listing of the Bonds on the Official List of the UK Listing Authority and the trading of the Bonds on the regulated market of London Stock Exchange plc, each with effect on and from the Optional Redemption Date.
The cost of redemption, which is expected to be £68.7 million, would exceed the par value of the Bonds by £3.7 million, which is £1.3 million less than the interest which would otherwise have been payable until redemption. The Group's weighted average cost of debt will fall by 23 basis points to a pro forma 2.28% (31 December 2017: 2.51%), and EPRA NAV will fall by 0.7p. The redemption will be funded from existing liquid resources.
Capitalised terms which are used in this announcement, and which are not otherwise defined in this announcement, shall have the meanings given to them in Conditions.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.
For further information, please contact:
CLS Holdings plc
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
+44 (0)20 3100 2222
+44 (0)20 7886 2500
Elm Square Advisers Limited
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
+44 (0)20 3047 2476
The Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"). Subject to certain exceptions, the Bonds may not be offered, sold or delivered in the US or to or for the account of US persons (as defined in Regulation S under the Securities Act).
This announcement is for information purposes only and is not a prospectus and does not constitute an offer to subscribe for or buy shares, the Bonds or other securities of CLS (the "Securities") in any jurisdiction. This announcement and the fact of its distribution is not and should not be seen as an inducement in relation to a decision to purchase Securities. Investors should not subscribe for or purchase any Bonds except on the basis of information contained in the Prospectus published by CLS, a copy of which can be found at http://www.clsholdings.com/en/ir/BondInformation/ukbond or on the London Stock Exchange website.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.