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Challenger Acquisitions secures support for loan note roll-over

Published: 09:00 26 Apr 2016 BST

Cash
Note holders agreed to roll over the maturity date

Challenger Acquisitions Ltd (LON:CHAL), the backer of giant observation wheel (GOW) projects, has extended the maturity date of its convertible notes due to mature this month.

With the agreement of the note holders, £2.81mln of outstanding loan notes will now mature on 6 May, 2017; all other terms of the notes remain unchanged.

“"We are pleased and appreciate that the current holders of the 2015 notes have agreed to roll-over their current holdings for another 12 months, demonstrating their confidence in our business model and providing us with additional flexibility to execute our business plans,” said Mark Gustafson, Challenger's chief executive officer.

Challenger has also raised £500,000 through the issue of new unsecured convertible notes, due 22 April, 2018.

Interest on the notes accrues at 8% a year, payable quarterly or upon conversion.

The notes can be converted into Challenger shares at 25p a pop or at the lowest volume weighted average price over a 10-day period prior to the conversion, whichever is the lower.

“The funding of £0.5 million will help ensure that we continue to develop our pipeline of 25 potential new GOW projects in Starneth," Gustafson said.

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