LONDON – TEAM plc (AIM: TEAM), a wealth and asset management and financial services group, has announced a financing initiative through the issuance of convertible loan notes (CLNs) to NFG Capital Limited. The company aims to raise up to £1 million (gross) through the move, which is expected to boost working capital and fund deferred consideration payments.
The CLN bonds, which are unsecured and carry an annual interest rate of 8%, have a term of three years expiring on 23 December 2027. TEAM plc has an early redemption option after 12 months, while the bondholder, NFG Capital Limited, cannot request redemption before maturity without Company approval.
The principal amount is withdrawable in four tranches of £250,000 each, with the first tranche available immediately and at least 90 days between subsequent withdrawals. A 2% withdrawal fee applies to each tranche after the first. In addition, for the third and fourth drawings, TEAM plc will issue 250,000 warrants to the participant, exercisable at 10 pence per share, expiring upon the conversion or payment of the CLNs.
The Notes will be converted into ordinary shares at the discretion of the Noteholder at any time before the third anniversary of the issue, at a conversion price of 15 pence per share. If not converted, CLN accounts must be repaid at face value on the due date, plus any interest due. In the event of a change of control before the third anniversary, the Noteholder has the right to convert at the conversion price or the actual share price if lower.
The CLNs will not be listed on any market but are transferable with TEAM's approval. An extraordinary general meeting is scheduled to be held on 24 January 2025 to obtain shareholder approval for the issue of shares in connection with this fund raising and other matters.
In a related announcement, Michael Gray will step down from his position as Non-Executive Director on 31 December 2024, and will not be replaced. Philip Taylor will assume the role of Chairman of the Remuneration Committee and will continue as Senior Non-Executive Director with a casting vote.
Mark Klopp, CEO of TEAM plc, expressed his gratitude for Gray's contributions since the company's IPO, referring to him as a strategic advisor and wishing him success in his future endeavours.
This financial strategy, based on a press release, is part of TEAM plc's broader efforts to secure funding for its operational and strategic initiatives.
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