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(Sharecast News) - Trafalgar Property Group said on Thursday that it has drawn down £0.1m under its previously-announced £0.15m convertible loan note facility with Wager Holdings to support working capital needs.
The AIM-traded residential and assisted living developer said the drawdown was made on the same terms as outlined in July, including an interest-free and unsecured structure with a maturity date on or before 31 December.
It said the notes are convertible into ordinary shares at 0.01p per share, subject to a restriction preventing Wager and its concert parties from holding 29.9% or more of the company's voting rights following any conversion.
Following the latest drawdown, £50,000 remained available under the facility.
No new ordinary shares had been issued in connection with the transaction, leaving the company's issued share capital unchanged.
As Wager is a substantial shareholder, the issue of the notes constituted a related-party transaction under the AIM rules.
Trafalgar said its independent directors, after consulting with its nominated adviser Spark, considered the terms of the facility "fair and reasonable insofar as the company's shareholders are concerned".
Reporting by Josh White for Sharecast.com.
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