Proactive Investors - Run By Investors For Investors

Aggregated Micro Power to raise £8.5mln to retire convertible loan stock

The placing requires shareholder resolutions to be passed by the company's shareholders
Currency
Note holders are free to convert their notes into shares instead, if they wish

Aggregated Micro Power Holdings PLC (LON:AMPH) plans to raise £8.5mln through the placing of shares at a pound a pop to retire convertible loan stock.

Shares in the specialist provider of distributed heat, power and renewable fuels closed at 110p on Friday.

READ: New acquisitions light a fire under Aggregated Micro's profit performance

Once it has the cash from the share issue, it intends to issue the call notice in respect of the £10.01mln outstanding fixed rate secured 8% series I and series II convertible loan notes, due for redemption in 2021.

Directors and management of the company currently hold, in aggregate, £2.22mln of the convertible loan notes and have committed to convert their notes into shares, which leaves around £7.79mln of loan notes that could be redeemed, on top of which there will be accrued interest of around £130,000 that will have to be paid to the noteholders.

It is entirely possible that some note-holders will follow the example of the company’s executives and convert their notes into shares, in which case, the money raised from this will be used, in order of priority, as follows:

  • Fuels business working capital and investment in growth (including fees) - £5,000,000
  • Urban Reserve - £3,000,000
  • Service & Maintenance business expansion - £500,000

"We are delighted and very grateful for the support shown by our existing and new shareholders in difficult market conditions. The proceeds from the placing will enable us to simplify our balance sheet structure and provide working capital to accelerate our growth," said Richard Burrell, the chief executive of Aggregated Power.

The company said it continues to trade in line with expectations. In the five months to the end of August, the company had unaudited revenue of £14.5mln, which is ahead of the corresponding period of 2018.

View full AMPH profile View Profile

Aggregated Micro Power Holdings PLC Timeline

Related Articles

Cyber security image of a lock in front of data
March 12 2019
The flagged launch in April is expected to accelerate product revenue growth.
remote meeting
January 14 2019
LoopUp bosses said the first half of 2018 was a “transformational period" for the group.
food in restaurant
September 17 2018
BigDish will start rolling out its platform to restaurants in Bath, before expanding across the south-west and eventually throughout the UK

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use