Issue of Convertible Loan Notes
Built Cybernetics raises £595,000 through convertible loan notes, with further £250,000 expected.
- Amount raised £595,000
- Further CLNs expected £250,000
- Total CLNs to be issued £845,000
- Maximum CLN facility £2,000,000
- Interest rate 12% pa
- Conversion price 3p per share
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Introduction
The directors of Built Cybernetics (AIM: BUC), the Smart Buildings group, are pleased to announce that the Company has raised £595,000 through the issue of Convertible Loan Notes ("CLNs") and expects to issue a further £250,000 of CLNs shortly to make a total of £845,000. The CLN instrument (the "CLN Instrument") allows for a total of £2,000,000 to be raised in aggregate through the issue of CLNs the principal terms of which are summarised below.
The Company remains in discussions with respect to further subscriptions of CLNs and further announcements will be made as and when necessary.
Background and Reasons for the Issue
As previously disclosed, the Group is in the final year of repayment of its outstanding CBILS facility and has low levels of debt.
The new funding strengthens the Group's balance sheet and provides greater financial flexibility to support the continued execution of its Smart Buildings strategy. It is expected to reduce overall debt servicing costs and enhance the Group's ability to invest in innovation, operations, and planned growth initiatives.
Principal Terms:
Terms of the CLNs are as follows:
Amount: Up to £2,000,000.
Interest Rate: 12% pa gross, payable quarterly in cash at the end of each calendar quarter.
Repayment Date: 31 December 2027.
Conversion: at the discretion of each holder, convertible at the end of each calendar quarter, on or before 31 December 2027, or upon the occurrence of certain other specified events.
Conversion price: the CLNs are convertible into ordinary shares at a price of 3p, being a premium of 28% to the closing mid-market price of 2.35p on 31 July 2025, the latest practicable date before this announcement.
Security: the CLNs are an unsecured obligation of the Company.
Additional Borrowings: pursuant to the terms of the CLN Instrument, and subject to certain exemptions specified therein, the Company has agreed that, from and including the date of the CLN Instrument, it will not incur third-party borrowings exceeding £3,000,000 (inclusive of the CLNs) without the prior consent of CLN holders who together hold at least 75% of the outstanding CLNs.
Early Repayment: if the Company wishes to procure Additional Borrowings and the required consent of the CLN holders is not obtained, the Company may, subject to the CLN holders electing to immediately convert their CLNs, repay the outstanding CLNs.
| Investor Enquiries We encourage all investors to share questions on this announcement via our investor hub | https://builtcybernetics.com/link/y1BgJe | |
| Built Cybernetics plc Clive Carver, Chairman Nick Clark, Chief Executive | +44 (0)20 7843 3001 | |
| Canaccord Genuity Limited , Nominated Adviser and broker Stuart Andrews Elizabeth Halley-Scott | +44 (0)20 7523 8000 | |
| PDMR Notification | ||
| 1 | Details of the person discharging managerial responsibilities / person closely associated | |
| a) | Name | Sarah Brameld |
| 2 | Reason for the notification | |
| a) | Position/status | PCA of PDMR (Jason Brameld, Chief Technical Officer) |
| b) | Initial notification /Amendment | Initial Notification |
| a) | Name | Built Cybernetics plc |
| b) | LEI | 213800WWNHLPUBSUK220 |
| a) | Description of the financial instrument, type of instrument | Loan Note (Convertible into Ordinary Shares of 1 penny each) |
| Identification code | convertible into GB0000617950 | |
| b) | Nature of the transaction | Subscription for Convertible Loan Notes 2025 |
| c) | Price(s) and volume(s) | |
| Price(s) | Volume(s) | |
| £1 | 15,000 | |
| d) | Aggregated information | |
| - Aggregated volume | 15,000 | |
| - Aggregate Value | £15,000.00 | |
| e) | Date of the transaction | 31 July 2025 |
| f) | Place of the transaction | Outside a trading venue |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.