Quadrant Group Plc - Re Proposed Disposal, etc
May 07 1998 - 6:20AM
UK Regulatory
RNS 0793a
QUADRANT GROUP PLC
7th May 1998
Quadrant Group Plc
Proposed Disposal of
Quadrant Precision Manufacturing Inc.
and Issue of Convertible Loan Stock
As announced on 14th April 1998, Quadrant Group plc
("Quadrant" or "the Company") has agreed, subject to
shareholders' approval, to dispose of its 80% beneficial
interest in Quadrant Precision Manufacturing, Inc. ("the
Disposal"). The minimum gross amount to be received is
$2,365,867 being $2m in cash and $0.366m of loan notes as
repayment of inter-company debt.
Quadrant also proposes to issue convertible loan stock
("the Convertible Loan Stock") to Scawton Limited, a
substantial shareholder in Quadrant and a related party
to one of Quadrant's directors.
A circular was posted to shareholders yesterday setting
out full details of the Disposal and the Convertible Loan
Stock and convening an Extraordinary General Meeting of
the Company on 29th May 1998 to consider resolutions
approving both transactions.
It is proposed that the Convertible Loan Stock be issued
to Scawton Limited on the following terms:
- Quadrant will issue Convertible Loan Stock with a
nominal value of #550,000 repayable after two years and
bearing interest at 12%.
- The Convertible Loan Stock will be secured by a
debenture granting a fixed and floating charge over the
assets of Quadrant Group ranking behind the Group's
bankers and other fixed charges.
- The Convertible Loan Stock will be convertible at
the option of the holder at any time prior to repayment
into new ordinary shares of the Company at 100 pence per
share.
- The maximum amount that may be so converted is
limited such that the maximum aggregate holding of
Scawton Limited and any person deemed to be acting in
concert with it will not exceed 29.99% of the then issued
share capital of the Company.
The proceeds of the issue of the Convertible Loan Stock
will be used to meet the Group's requirements for working
capital, investment and refinancing of term debt over the
next 18 months.
The current trading and prospects of Quadrant Group are
as set out in the interim statement published on 31st
March 1998. In addition, Quadrant Systems Limited has
recently been awarded a contract for a major update and
relocation of a Boeing 737 flight simulator for a new
airline customer. The Directors expect this contract to
generate revenues in excess of #500,000 over
approximately 9 months.
7 May 1998
For further information contact:
David Coghlan, Chief Executive 01527-850-080
Nigel Poultney, Finance Director 01527-850-080
Claudia Cramoisan, Beeson Gregory 0171-488-4040
END
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