Symphony Environmental Tech extends convertible loan agreements

14th Mar 2024 13:36

(Sharecast News) - Symphony Environmental Technologies announced extensions to its existing convertible loan agreements with Sea Pearl Ventures on Thursday, to 31 December 2025, expanding from the previous end date of 30 September 2024.

The AIM-traded firm said the terms of the agreements, first announced on 13 March 2023 and updated on 18 October 2023, remained unaltered.

It said the updated agreements entailed a drawn principal totaling £1.5m, without security.

If not repaid by 31 December 2025, the loan would convert at a price set at 80% of the volume-weighted average share price for the three months leading up to the specified date.

Additionally, the loan carried a 7% annual interest, payable on repayment or conversion, with Symphony retaining the discretion for full or partial repayment.

Sea Pearl Ventures, headquartered in the Bahamas, currently holds a 17.4% stake in Symphony's issued share capital.

Given Sea Pearl's status as a substantial shareholder, the extension of agreements constituted a related party transaction under the AIM rules.

After consultation with its nominated adviser, Symphony's board said it had deemed the extension fair and reasonable for the interests of shareholders.

At 0937 GMT, shares in Symphony Environmental Technologies were down 9.02% at 2.5p.

Reporting by Josh White for Sharecast.com.