Westminster Group (LON:WSG) has raised £1mln through a convertible loan note agreement with what are described as “high quality” strategic investors.
It will support business development costs, namely those associated with an expansion of ferry services in West Africa.
The new cash will also benefit an envisaged expansion of Westminster’s managed services division, which earlier this month signed a long term deal for airport security. It is a separate operation to the existing West African airport contract.
Peter Fowler, Westminster chief executive, said: "With the Ebola crisis in West Africa now nearing an end and the imminent launch of the ferry service, together with the planned expansion of associated infrastructure and recent developments with growth opportunities of our Managed Services business elsewhere in the world, we continue to be mindful of the cash needs of the business.”
Fowler also told investors that the company will begin ticket pre-sales in the near future, as the ferry is booked into the slip for repair on November 9.
Westminster said the loan notes, which carry interest at 10% per year, matures in June 2018 and are convertible at a price of 35p per share.
Interest will be payable quarterly, in arrears.
As well as the loan notes, the strategic investors will also be gifted 1.1mln new shares priced at 10p each. It, in effect, reduces the average conversion price to 25p – which would still represent 105% upside to the yesterday’s closing price of 11.87p.
The framework of the loan note facility was initially established in June 2013, Westminster said, and it was varied in 2015.