08:00 Wed 16 Aug 2017
Cloudbuy PLC - Interim Results
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cloudBuy plc
("cloudBuy" or the "Company")
Interim Results for the six months ended
cloudBuy plc (AIM: CBUY), the global provider of cloud-based ecommerce marketplaces and B2B buyer and supplier solutions, today announces its unaudited interim results for the six months ended
Operational
· PHB Choices making positive progress with 25% of CCG's either contracted or in advanced discussions.
· Contracts won in 2016 continue to generate revenue.
· The impact of cost reductions made in 2016 and in 2017 have significantly reduced the cost base.
Financial
· Revenue increased by 4% from H1 2016 to
£0.819m .· Administrative expenses, excluding share based payments, decreased by 34% to
£1.733m (2016:£2.643m ).· After a charge for share based payments of
£0.248m (2016:£0.348m ), the operating loss decreased by 45% to£1.296m (2016:£2.347m ).· Cash and cash equivalents as at
30 June 2017 were£1.469m (30 June 2016 :£1.947m ) reflecting the losses incurred, offset by the Roberto Sella financing.· Management expectations are for revenue and operating profit, excluding share based payments, to be broadly in line with market expectations for 2017.
The expected progress on these key contracts and cost reduction measures already taken will result in a significantly lower loss for 2017 compared to 2016."
For further information, please contact:
cloudBuy plc |
Tel: 0118 963 7000 |
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Arden Partners plc - NOMAD and broker |
Tel: 020 7614 5900 |
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About cloudBuy plc
cloudBuy, (AIM: CBUY), provides cloud solutions for buyers and sellers - and brings them together to trade securely and ethically via an increasing number of public e-marketplaces and private purchasing portals around the world, powered by cloudBuy ecommerce technology.
cloudBuy solutions for buyers help B2B purchasers understand and control their spend, to reduce costs and increase value. Our cloudSell solutions enable sellers of all sizes, from startups to corporates, reach new customers and grow their business.
cloudBuy's technology platform powers web sites, public marketplaces and private purchasing portals that enable all types of online interactions and relationships including, citizen and business to government; consumer to business; and business to business.
For more information visit: www.cloudbuy.com
CHAIRMAN'S STATEMENT
Operational
We continue to focus on our key projects.
PHBChoices
Our Marketplace for Personal Health Budgets (PHB's) is showing considerable promise with around 25% of Clinical Commissioning Groups (CCG's) either contracted or engaged in advanced discussions and a strong pipeline across the remainder. Working with the early adopters, our customer,
The majority of PHB's currently in place employ personal assistants (PA's) rather than using care suppliers. Recognising this and to increase the breadth of the offer, NHS SBS Employment Services have added a payroll solution to PHBChoices to include PA's alongside the 400,000 NHS staff members they currently pay. From a cloudBuy perspective we have developed a PA module which covers PA booking, time-sheets, time and attendance and feeds directly into the payroll service ensuring that we have a fully electronic solution. On average PHB holders employ 4 PA's, however this can increase to 10 or more for individuals with very complex health needs, making this a critical area for the success of PHBChoices.
During the first half we engaged with CCG's and their PHB holders on a pilot basis as it became clear that we would have to develop a fully functional solution to PA's for this phase of take-on to be successful. This is now largely complete and from September CCG's are going live with standard contracts.
NHS
United Overseas Bank in
We are providing a marketplace for the bank's SME customers, giving access to special offers and competitive pricing from a range of flagship suppliers. The initial suppliers are all large organisations with whom the bank has a strategic relationship. The marketplace is now live in
The CII marketplace in
We have started initial discovery work on our first project in
Our project with the
HealthShare New South Wales
Our flagship Spend Analytics project in
Funding
During the half year, the final tranche of the Roberto Sella funding of
Financial Results
Turnover showed a small increase on 2016 with increased project revenue partially offset by non renewal of contracts in H2 2016 and lower revenue in Company Formation Services. Operating losses were reduced by
Cash and cash equivalents as at
Outlook
PHBChoices remains our key focus for future growth. Positive progress towards revenue growth from this contract has been made in H1 and is expected to continue for the remainder of 2017 and in future years. This will be supplemented with revenue from existing contracts and focussed new revenue opportunities.
Losses will continue to reduce through growth in revenue and the effect of costs reductions already implemented which will have a greater impact on the H2 cost base.
Executive Chairman
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
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Notes |
6 months to 30 June 2017 £'000 |
6 months to 30 June 2016 £'000
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Year ended 31 Dec 2016 £'000
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Revenue |
2 |
819 |
785 |
1,714 |
Cost of sales |
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(134) |
(141) |
(298) |
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Gross profit |
|
685 |
644 |
1,416 |
Administrative expenses |
|
(1,733) |
(2,643) |
(4,778) |
Share based payments |
|
(248) |
(348) |
(694) |
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Operating loss |
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(1,296) |
(2,347) |
(4,056) |
Finance income Finance Cost |
|
- (184) |
- (53) |
- (216) |
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|
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|
Loss on ordinary activities before taxation |
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(1,480) |
(2,400) |
(4,272) |
Income tax expense |
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- |
- |
157 |
|
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Loss for the year attributable to equity shareholders of the parent |
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(1,480) |
(2,400) |
(4,115) |
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Other comprehensive income - item which will or may be reclassified to profit and loss |
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Exchange gain arising on translation of foreign operations |
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(9) |
11 |
(359) |
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Total comprehensive income |
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(1,489) |
(2,389) |
(4,474) |
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Loss per share - basic and diluted |
3 |
(1.1)p |
(1.9)p |
(3.2)p |
Revenue and operating loss all derive from continuing operations.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
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Notes |
30 June 2017 £'000 |
30 June 2016 £'000
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31 Dec 2016 £'000
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Assets |
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Non-current assets |
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Other intangible assets |
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7 |
27 |
9 |
Property, plant and equipment |
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152 |
172 |
182 |
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159 |
199 |
191 |
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Current assets |
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Trade and other receivables |
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562 |
287 |
522 |
Taxes recoverable |
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60 |
50 |
207 |
Cash and cash equivalents |
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1,469 |
1,947 |
1,036 |
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2,091 |
2,284 |
1,765 |
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Total assets |
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2,250 |
2,483 |
1,956 |
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Liabilities |
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Current liabilities |
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Trade and other payables |
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(1,029) |
(846) |
(1,019) |
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(1,029) |
(846) |
(1,019) |
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Non-current liabilities |
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Financial liabilities - borrowings Non-convertible loan notes Convertible loan notes |
4 |
(1,633) (2,822) |
- (2,134) |
(661) (2,412) |
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(4,455) |
(2,134) |
(3,073) |
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Total liabilities |
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(5,484) |
(2,980) |
(4,092) |
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Net Assets/(liabilities) |
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(3,234) |
(497) |
(2,136) |
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Shareholders' equity |
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Called up share capital |
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1,304 |
1,304 |
1,304 |
Share premium |
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5,534 |
5,534 |
5,534 |
Other reserve |
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1,737 |
1,496 |
1,594 |
Share based payment reserve |
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1,235 |
640 |
987 |
Currency translation |
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(318) |
61 |
(309) |
Accumulated profit/(losses) |
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(12,726) |
(9,532) |
(11,246) |
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Total equity attributable to equity shareholders of the parent |
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(3,234) |
(497) |
(2,136) |
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CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
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6 months to 30 June 2017 £'000 |
6 months to 30 June 2016 £'000 |
Year ended 31 Dec 2016 £'000 |
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Cash flows from operating activities |
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Loss before tax |
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(1,480) |
(2,400) |
(4,272) |
Adjustments for: |
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Finance (income)/cost |
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184 |
53 |
216 |
Depreciation of property, plant & equipment |
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38 |
28 |
91 |
Amortisation of other intangible assets |
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3 |
1 |
18 |
Share based payments |
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248 |
348 |
694 |
Changes in working capital |
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Trade and other receivables |
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(40) |
145 |
(90) |
Trade and other payables |
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(125) |
(97) |
(44) |
Currency translation |
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(9) |
11 |
(369) |
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Net cash used by operations |
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(1,181) |
(1,911) |
(3,756) |
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Tax received |
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147 |
- |
- |
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Net cash outflow from operating activities |
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(1,034) |
(1,911) |
(3,756) |
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Cash flows from investing activities |
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Interest received/(paid) |
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- |
- |
(4) |
Purchase of other intangible assets |
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(1) |
(24) |
(23) |
Purchase of property, plant and equipment |
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(8) |
(5) |
(68) |
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Net cash used in investing activities |
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(9) |
(29) |
(95) |
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Cash flows from financing activities |
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Issue of ordinary shares |
|
- |
133 |
133 |
Issue of convertible loan note (net of costs) |
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1,476 |
3,000 |
4,000 |
Interest received |
|
- |
- |
- |
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Net cash generated from financing |
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1,476 |
3,133 |
4,133 |
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Net increase in cash and cash equivalents |
|
433 |
1,193 |
282 |
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Cash and cash equivalents at beginning of period |
|
1,036 |
754 |
754 |
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Cash and cash equivalents at end of period |
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1,469 |
1,947 |
1,036 |
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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
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Share capital
£'000 |
Share premium
£'000 |
Other reserve
£'000 |
Share based payment reserve £'000 |
Currency trans-lation
£'000 |
Accumul-ated profit and loss £'000 |
Total
£'000 |
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Balance as at
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1,284 |
5,422 |
630 |
292 |
50 |
(7,132) |
546 |
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Shares issued in the period |
20 |
112 |
- |
- |
- |
- |
132 |
Equity attributed to convertible loan note |
- |
- |
866 |
- |
- |
- |
866 |
Share based payments |
- |
- |
- |
348
|
- |
- |
348 |
Exchange in period |
- |
- |
- |
- |
11 |
- |
11 |
Loss for the period |
- |
- |
- |
- |
- |
(2,400) |
(2,400) |
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Balance as at
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1,304 |
5,534 |
1,496 |
640 |
61 |
(9,532) |
(497) |
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Shares issued in the period |
- |
- |
- |
- |
- |
- |
- |
Equity attributed to convertible loan note |
- |
- |
98 |
- |
- |
- |
98 |
Share based payments |
- |
- |
- |
347 |
- |
- |
347 |
Exchange in period |
- |
- |
- |
- |
(370) |
- |
(370) |
Loss for the period |
- |
- |
- |
- |
- |
(1,714) |
(1,714) |
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Balance as at |
1,304 |
5,534 |
1,594 |
987 |
(309) |
(11,246) |
(2,136) |
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Equity attributed to convertible loan note |
- |
- |
143 |
- |
- |
- |
143 |
Share based paymentsExchange in period |
- - |
- - |
- - |
248 - |
- (9) |
- - |
248 (9) |
Loss for the period |
- |
- |
- |
- |
- |
(1480) |
(1,479) |
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Balance as at
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1,304 |
5,534 |
1,737 |
1,235 |
(318) |
(12,726) |
(3,234) |
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NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
These interim financial statements have been prepared in accordance with the accounting policies set out in the Annual Report and Accounts for the year ended
The preparation of financial statements requires estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although the estimates are based on management's best knowledge of the amounts, events or actions, actual results may differ from those estimates.
This announcement which was approved by the board of cloudBuy plc on
2. Revenue (unaudited)
Set out below is an analysis of revenue recognised and gross profit attributable between reportable segments:
Revenue |
6 months to 30 June 2017 £'000 |
6 months to 30 June 2016 £'000 |
Year ended 31 Dec 2016 £'000 |
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Company formation services |
209 |
267 |
492 |
Web and ecommerce services |
579 |
489 |
1,166 |
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31 |
29 |
56 |
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819 |
785 |
1714 |
Gross Profit |
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Company formation services |
112 |
143 |
265 |
Web and ecommerce services |
542 |
472 |
1,095 |
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31 |
29 |
56 |
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|
685 |
644 |
1,416 |
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3. Loss per share (unaudited)
The calculations for loss per share are based on the weighted average number of shares in issue during the period 130,432,664 (6 months to
|
6 months to £'000 |
6 months to £'000 |
Year ended £'000 |
Unadjusted earnings: |
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Loss on ordinary activities after tax |
(1,480) |
(2,400) |
(4115) |
Add back: |
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Share based payments |
248 |
348 |
694 |
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1,231 |
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Adjusted earnings: |
(1232) |
(2,052) |
(3,421) |
The share options and warrants are not dilutive as they would not increase the loss per share in the year.
The basic and diluted loss per share calculated on the unadjusted earnings is 1.1p (6 months to
The basic and diluted loss per share calculated on the adjusted earnings is 0.9p (6 months to
4. Convertible Loan Stock and Loan Stock
The principal terms of the loan instruments are as follows:
Instrument (the "Instrument") |
Interest bearing loan note instrument constituting 4,172,562 |
Amount |
Up to |
Term |
10 year term with an early repayment option on 5th anniversary |
Drawdown |
Minimum of |
Interest |
2.33% |
Borrower Covenants |
cloudBuy plc cannot issue any instrument that is pari passu or senior to the Instrument and/or the Loan Notes without the consent of the holder of the Loan Notes |
Lender Covenants |
None |
Conversion price |
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Security |
The Loan Notes will be secured, by way of a secondary charge over the Company's assets, with the charge ranking behind the Company's clearing bank facility provider from time to time where the priority charge over the Company assets will be limited to |
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Mr. |
5. Disclosure of Concert Party Shareholdings
The following details are required to be disclosed in this report to comply with the conditions of The Takeover Code.
Shareholder |
Interest in issued share capital on 11 |
Percentage interest in issued share capital on 11 August 2016 |
Total interest on the basis that the full |
Percentage total interest on the basis that the full |
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14,700,000 |
11.27% |
86,911,877 |
42.89% |
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2,150,000 |
1.65% |
2,150,000 |
1.06% |
Total |
16,850,000 |
12.92% |
89,061,877 |
43.95% |
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