WideCells Group Plc (LON:WDC) told investors that a financing agreement with the European High Growth Opportunities Securitization Fund expired.
The company said it understands that substantially all bonds held by the fund will or have been converted into shares, and it expects confirmation of this in the coming days.
It noted that following any final debt conversions, the investor has committed to a lock in – applicable to no less than 5% of the issued share capital of the company – for at least a four month period.
WATCH: WideCell's David Sefton clarifies financing agreement with institutional investor
Widecells, meanwhile, highlighted that progress in building Iconic Labs continues. The company added that the board believes that it is now in a stronger financial position as business development activities continue. Engagements have been signed, it added.
“The company has an aggressive growth strategy, including making targeted acquisitions and will, going forward, look to support its activities through more traditional forms of debt and equity issuance and will seek to avoid structures with variable conversion where possible,” Widecells added.
A separate regulatory statement noted that £400,000 of convertible bonds have exchanged for equity, issuing 100mln new shares to the investor.