- Sondrel (Holdings)
- 01 March 2024 13:55:27
Source: Sharecast
The AIM-traded firm said the discussions had progressed significantly towards being finalised.
It said the proposed solution would involve a secured 15% convertible loan note (CLN) of £0.9m.
Under the terms being negotiated, on completion of a broader fundraising effort aimed at generating net proceeds of £6m, the CLN would be mandatorily convertible into new shares in Sondrel at a price of 10p per share.
The capital provider was also expected to contribute a substantial equity investment as part of the broader fundraising initiative, which was targeted for completion by the end of March.
Sondrel said the anticipated fundraising effort was crucial for Sondrel as it looked to secure the necessary working capital resources to sustain its operations until achieving a positive trading cash flow position by the end of the 2024 financial year.
However, the company said provision of the CLN remained contingent on reaching a final agreement between the parties, adding that it would not be able to meet its February payroll obligations in full until the proceeds from the CLN were received.
At 1318 GMT, shares in Sondrel Holdings were up 3.13% at 10.06p.
Reporting by Josh White for Sharecast.com.
