Clear Leisure PLC (LON:CLP) saw its shares rise on Monday as the group revealed it has entered into a binding agreement with Eufingest SA to convert all the investor’s outstanding loans plus accrued interest to date.
The loans, amounting to a total of €3,423,707, will be converted into either the company’s Zero Coupon Bond or a new, similar bond security with a maturity date of December 15, 2022, and a yield to maturity of 1%.
As part of the agreement with Eufingest, the company will provide a security over any proceeds arising from the company’s ongoing legal claim against Sipiem in Italy.
It has also been agreed that Eufingest will have the right to convert, at any time, the bond into new Clear Leisure ordinary shares at a conversion price of 1p per ordinary share.
Eufingest already holds €3m of the Zero Coupon Bond the total face value of which currently in issue is €4.8m.
In a statement, Francesco Gardin, executive chairman and CEO of Clear Leisure, commented: “We are very pleased by Eufingest’s long term commitment to the Company.
“Setting the maturity date of all existing loans into a Zero Coupon Bond to 15 December 2022 allows the Company to focus on its new technology investments strategy, while accomodating a reasonable time for the outcome of current litigation.”
In morning trade on Monday, Clear Leisure shares were 6.5% higher at 0.25p.