Cellexus Biosystems reports that its main investor, Co-opr8 investments, has given notice of its intention to convert its loan note into company stock
The full amount of the loan, £60,000 will be converted into stock at a price of £0.20 per share - the share price when the loan note was issued.
The conversion also brings forward the grant to Co-opr8 Investments of an equal number of warrants with an exercise price of £0.30, which have the same terms and conditions as all other warrants, which were granted under information memorandum 2 (closed in April 2006).
In brief, all warrants, including those granted through the conversion of the Co-opr8 loan note, must be exercised when the company lists on AiM, or is acquired, or in 2011 - whichever is the sooner.
Co-opr8 now hold 575,000 shares (13.9% of the company's issued share capital, up from 7.2%) and a total of 550,000 warrants (up from 250,000) with the £0.30 exercise price.
Fully diluted (if all warrants and share options were exercised), Co-opr8 would hold 12.98% of the company's stock.
Rob Molloy of Co-opr8 Investments and a non-executive of Cellexus Biosystems said: "Co-opr8 has chosen to covert its loan note with Cellexus to consolidate our position and to demonstrate our belief that Cellexus Biosystems will deliver continued shareholder value.
"We have supported Cellexus since its inception and we will continue to do so whenever possible.
"We take a long-term view regarding our investment and are extremely pleased with the progress Cellexus has made to date."
