Extension to Convertible Loan Agreements
Symphony Environmental Technologies Plc has extended its £1.5 million convertible loan agreements with SESR Investments Pte Ltd from December 31, 2025, to June 30, 2026, with other terms remaining unchanged, including a 7% annual interest rate and conversion at 80% of the volume-weighted average share price prior to the new maturity date. This extension, considered a related party transaction due to SESR's 19.68% shareholding, is deemed fair and reasonable by the board, aiming to provide flexibility for significant long-term developments without issuing new securities at potentially undervalued market prices.
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Symphony Environmental Technologies Plc (AIM: SYM), global specialists in technologies that make plastic products "smarter, safer and sustainable", is pleased to announce extensions to the existing £1.5m convertible loan agreements entered into with SESR Investments Pte Ltd ("SESR") (together, the "CLAs") from 31 December 2025 to 30 June 2026. The CLAs were previously extended to 31 December 2025 on 14 March 2024.
The other key terms of the CLAs, which were originally announced on 13 March 2023 and 18 October 2023 respectively are unchanged.
The key terms of the updated CLAs are repeated below for completeness:
- CLAs total drawn principal: £1.5 million (unsecured)
- If not repaid on or before 30 June 2026, conversion on that date
- Conversion price: 80% of the volume-weighted average share price for the 3 months prior to 30 June 2026
- Interest: 7% per annum, payable as accrued on repayment and/or conversion
- Repayment of the CLAs, in full or in part solely at Symphony's discretion
SESR is interested in 19.68% of Symphony's issued share capital. As SESR is a substantial shareholder, extension of the CLAs is deemed to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the board of directors of the Company consider, having consulted with the Company's nominated adviser, that the extension of the CLAs is fair and reasonable insofar as the Company's shareholders are concerned.
Michael Laurier, CEO, commented: "We are grateful for the continued support of SESR. As highlighted in our previous announcements, we have a number of long-term major developments that we believe are approaching maturity. In light of these anticipated milestones, the Board wants to avoid issuing new securities at current market values, which do not reflect the potential impact of these developments. The extension of the CLNs provides the Company with the flexibility to progress these initiatives to completion whilst preserving shareholder value."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.