News Archive
Exercise of warrants, loan note agreement and acquisition
Exercise of warrants
Eden Research is pleased to announce that it has issued 1,490,261 Ordinary Shares of 1p each pursuant to the exercise of warrants. The net proceeds to the Company from this exercise of warrants is £390,356.
Loan Note Agreement
Separately, Eden Research has entered into a £750,000 convertible loan note agreement with Trafalgar Capital Specialized Investment Fund (the "Lender").
The loan carries interest at a commercial rate and is for a two year period but is repayable early by the Company, subject to early redemption costs. Additionally, the Lender has the right to convert up to £50,000 per week of the then outstanding debt (if not repaid) into ordinary shares at the lower of 115% of the share price on 31 December 2007 or a 15% discount to the prevailing price at the time of conversion. These conversion rights only begin in February 2008.
The loan is structured so that £500,000 was forwarded to the Company on 31 December 2007, with the balance of £250,000 available on 1 September 2008 to the Company if requested. The loan is to be used for general working capital purposes and could be used for acquisitions, yet to be identified, if considered appropriate.
As part of the agreement, the Company issued to the Lender warrants over 575,000 Ordinary shares with a term of 5 years and an exercise price for 50% at the price of the Ordinary Shares on 31 December 2007 and for 50% at 115% of that price.
Additionally the Lender was issued with 24,800 Ordinary Shares as a facility commitment fee on entering into the agreement and the Company has paid various further commitment, due diligence and structuring fees in respect of the loan.
Piers Linney, a partner at Trafalgar Capital said "We are pleased to have the opportunity to invest in the Company and we were attracted by the management team and the market potential of the products".
Tim Griffiths the Chief Executive of Eden Research said "This latest warrant exercise demonstrates an increasing confidence with regard to the future and the Trafalgar commitment will help the Company accelerate significantly its development programme".
For further information, please contact:
Tim Griffiths, Chief Executive, Eden Research plc
T: 01993 868844
Jonathon Brill/Caroline Stewart, Financial Dynamics
T: 020 7831 3113
About Eden Research plc
Eden Research plc is a UK publicly listed company on the PLUS Market, specialising in the development of agrochemical products and intellectual property through licensing and marketing agreements.
Eden is focused on developing products for the agricultural sector through the application of terpene chemistry and other patented environmentally friendly technologies. Eden is currently working alongside universities and partner companies in developing its product portfolio towards commercialisation.
For further information please visit www.edenresearch.com.