Shares in Kin Group Plc (LON:KIN) edged higher late on Tuesday Morning after the company confirmed it still has the support of a key investor despite breaching a condition of its recent convertible loan note issue.
Last month, the digital wellness solutions provider – which trades as Kin Wellness – agreed to issue £1.125mln worth of convertible loan notes to Belastock Capital, an overseas-based institutional investor.
One of the conditions of those notes was that Kin’s share price wasn’t allowed to fall below 0.1p for five or more consecutive days; something that happened yesterday.
Belastock has the right to waive this condition which it has duly done, and Kin said the investor has “confirmed its ongoing support for the company”.
In a stock exchange announcement, Kin added: “It is still the intention of Belastock to subscribe for the remaining tranches of the notes as previously outlined.”
Next tranche due mid-July
The first tranche of loan notes, with a nominal value of £350,000, was issued on the day the agreement was announced (15 May).
The second tranche of notes, which should raise around £255,000 net of expenses, is due to be issued in the middle of July.
The final two tranches after that are due in mid-September and mid-November, respectively.
Shares gained 2.8% to stand at 0.1p.