Braemar chief converts loan to equity

2 Jul 2009, 09:54

Hale-based fund manager Braemar Group today announced that chief executive Marc Duschenes will convert £200,000 of loan notes into equity at a price of 2.75p a share.

Duschenes will receive 7,272,727 new ordinary shares. The measure reduces Braemar's debt by £200,000 and will save the firm £20,000 in interest over the next 18 months.

The price paid for the new shares is at a discount to the 3p a share agreed when the loan notes were issued on 10 November 2005 as part of the deal to buy the business from Duschenes and float on AIM.

Braemar said: "After assessing the benefits of the partial early conversion on the company's financial position, and in light of the current share price, the directors have concluded that the variation to the original conversion rate is acceptable and in the best interests of the Company."

Duschenes will hold 24% of the total issued share capital of the company when the deal completes.

Zeus Capital advised Braemar.

Braemar's share price edged up to 3p this morning, valuing the business at £4.71m.

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