Clear Leisure has entered into an unsecured convertible loan facility agreement with Eufingest, a Swiss investor and major shareholder in the company.
Under the facility, Eufingest provides €300,000 at an interest rate of 2.5% per annum. The facility is repayable on 30 April 2017 and the proceeds will be used for working capital purposes and to retire subsidiary bank debt at a discount.
The company may repay the facility early at any time without penalty. At any time before 30 April 2017, Eufingest may convert the outstanding balance of the facility into shares at the rate of 0.85 pence per share.
Eufingest is the beneficial holder of more than 10% of the ordinary share capital of the company.
Eufingest, as the largest shareholder, remains fully supportive of the Boards efforts to realise value from its investments and this facility when drawn down will increase the amount outstanding to Eufingest to £894,124.00 plus its €3,000,000 holding of bonds issued by the Company.
Clear Leisure chairman and chief executive Francesco Gardin said: "We will continue to reduce bank debt accrued by certain subsidiaries, which ultimately results in the Group having a stronger consolidated balance sheet."
At 1:46pm: (LON:CLP) Clear Leisure PLC share price was +0.05p at 0.83p