TIDMECP
RNS Number : 3985M
Eight Capital Partners PLC
23 May 2022
23 May 2022
Eight Capital Partners plc
("ECP", "Eight Capital" or "the Company")
Balance Sheet Restructuring Update and Issue of Listed Bonds
Eight Capital Partners plc (AQSE: ECP), the financial services
operating company that aims to grow revenue through businesses
engaged in "Fintech" operations, from the digitisation of banking
services, through to blockchain-backed disruptive finance companies
provides an update to its balance sheet restructuring previously
announced on 27 September 2021.
The Company announces that, following the sale of EUR5 million
of vendor loans held by IWEP Limited ("IWEP"), a company controlled
by ECP's Chairman, Mr Dominic White, to an independent third party,
the Company has agreed to satisfy the vendor loan acquired by the
third party through the issue of EUR5 million of the Company's EUR
7% Fixed Rate Bonds ("the 7% Bonds") (the "Debt Conversion"). The
7% Bonds are traded on the Vienna Exchange and are due to mature on
26 July 2022. This further tranche of 7% Bonds were admitted to
trading on the Vienna MTF Stock Exchange on 20 May 2022, issued at
par, and pay interest of 7% per annum semi-annually in arrears.
As a result of the Debt Conversion, there has been no change to
the aggregate amount of ECP's outstanding debt. The revised amounts
outstanding of the 7% Bonds and the Vendor Loan are now EUR8.99
million and EUR20 million respectively.
As announced on 27 September 2021, t he Board's objective
continues to be to grow the market capitalisation of the Company
towards and beyond GBP50 million. T he board of ECP recognises that
in order to build value in the Company, a proactive reorganisation
of ECP's balance sheet is appropriate, including, inter alia, the
conversion of some or all of ECP's existing debt. The Debt
Conversion forms the first step of the balance sheet reorganisation
process that is envisaged over the coming months.
IWEP, the Company's largest shareholder and debt holder, has
stated its intention, conditional on appropriate shareholder
approvals and regulatory clearance from the Takeover Panel in
respect of a Rule 9 whitewash resolution, to convert up to EUR20
million of its remaining vendor loan into equity in ECP (the
"Conditional Equity Conversion"). The Company therefore intends, as
the second step in the balance sheet reorganisation, shortly after
the release of its results to 31 December 2021, to convene a
general meeting of shareholders to approve resolutions to allow it
to effect the Conditional Equity Conversion. Subject to demand,
additional third party debt to equity conversions on the same terms
may also then be effected at the same time as the Conditional
Equity Conversion.
The Company has previously stated that it may seek to undertake
an equity fundraise to existing and new investors. Following the
Conditional Equity Conversion, the Company intends to explore this
opportunity as the third step of its balance sheet
restructuring.
ECP Chairman, Dominic White, commented:
"The Company has been successful in creating and utilising debt
instruments to raise finance. These instruments have been valuable
in helping to build gross asset value. Thanks to the positive
support of a number of our debt investors, our aim is that the
initial steps outlined here, will enable the Company to convert a
significant amount of its debt into equity, expand the equity value
of the business and therefore make ECP's shares more attractive to
investors.
"As ECP moves forward through its balance sheet strengthening
process, it is also carefully analysing fintech acquisition
opportunities in digital banking, trade receivables and inventory
finance, and wealth management. As Chairman and as a substantial
investor, I believe that this will lead to accelerated growth,
increased opportunities and enhanced shareholder returns."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Eight Capital Partners plc +44 20 3808 0029
Dominic White info@eight.capital
Cairn Financial Advisers LLP
AQSE Corporate Adviser
Jo Turner / James Lewis +44 20 7213 0880
Walbrook PR Limited +44 20 7933 8780
Paul Vann/Nick Rome Paul.vann@walbrookpr.com
About Eight Capital Partners:
Eight Capital Partners plc is an international financial
services operating company focused on owning and operating
businesses engaged in "Fintech" operations, from the digitisation
of banking services, through to blockchain-backed decentralised
finance companies.
ECP provides equity, debt, and equity-related investment capital
to companies seeking capital for growth and development,
consolidation or acquisition, or pre-IPO financing. The Company
seeks to generate an attractive rate of return for shareholders,
predominantly through capital appreciation, by maximising the
revenues, profits and value of its operating subsidiaries, and
taking advantage of the increasing number of acquisition
opportunities within the continuously developing global technology,
and fintech sectors.
www.eight.capital
Eight Capital Partners operates two subsidiary businesses:
Epsion Capital:
Epsion Capital is an independent corporate advisory firm based
in London with an extensive experience in UK and European capital
markets. The company is specialised in ECM, DCM, structured
investment facilities, and M&A across multiple markets, sectors
and geographies. It prides itself on a commercial approach that
enables its clients to achieve their growth ambitions.
www.epsioncapital.com
Innovative Finance:
Innovative Finance is a corporate finance advisory business that
sources and develops mergers and acquisitions and financing
solutions across multiple sectors, primarily in Europe, with access
to international transactions. It is currently working on
transactions in North America and Europe which are linked to
technological developments in the financial services industry,
e-commerce and cannabis. www.innovfinance.com
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END
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May 23, 2022 02:01 ET (06:01 GMT)
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