Company Announcements

Everest Global Plc - £3.0 million received from subscription of New Convertible Loan Notes

 

28 August 2024

Everest Global plc

(“ Company ”)

£3.0 million received from subscription of New Convertible Loan Notes

 

The directors of the Company refer to the announcement of 15 August 2024 whereby the Company constituted a loan note instrument pursuant to which the Company may issue up to £50 million convertible loan notes (“CLNs”) in tranches of integral multiples of £250,000 at any time. Each tranche of CLNs will have an initial term of 3 years from the date of the certificate being issued to the relevant noteholder (the “Loan Note Instrument”).

 

The Company announced that it had issued 14 unsecured CLNs to Surich Real Estate Opportunity Fund SPC (“SPC” or the “Noteholder” respectively) in an aggregate value of £3.5m.   Subsequently, the Noteholder and the Company agreed that £3.0m of funds would be sufficient for the Company’s current working capital requirements and accordingly, the subscription was amended to comprise 12 CLNs and the Company today confirms that £3.0 million in relation to these CLNs has been received into the Company’s bank account. The Noteholder has indicated that should the Company require further funding it would be amenable to subscribe for more, should their circumstances permit.

 

SPC is wholly owned and controlled by Mr Ziwei Peng. Mr Peng is the owner and controller of Golden Nice International Group Limited, which holds a 24.55% interest in the issued share capital of the Company. Given Mr Peng’s holding in the Company, the issue of the CLNs to SPC is a related party transaction for the purposes of Rule 7.3 of the Disclosure Guidance and Transparency Rules.

 

The Company is issuing the CLNs to fund the Company's working capital and capital expenditure requirements for the time being and in order to work towards executing its strategy to undertake one or more further acquisitions of businesses (either shares or assets) in the beverage distribution and production sector in the UK and the rest of Europe as set out in its prospectus dated 31 October 2023.

 

The material terms of the CLNs are:

-           the aggregate principal amount of the CLNs is limited to £50m and they will be issued in integral multiples of £250,000;

-           the CLNs issued pursuant to the Loan Notes Instrument are unsecured;

-           the term of each tranche of CLNs is 3 years from the date of the certificate of the applicable CLNs;

-           they are convertible into ordinary shares of £0.02 each in the issued share capital of the Company (“Ordinary Shares”);

-           the Noteholder will not be able to convert CLNs in the first 12 months from the date of issue of such CLNs;

-           the Noteholder will not be able to convert CLN if in any rolling 12-month period Everest has already issued 20% of its entire issued share capital, unless:

o a prospectus is published by the Company which includes a disclosure referring
  to the conversion of such CLNs and admission of the new Ordinary Shares to the
  Official List of the Financial Conduct Authority and to trading on the London
  Stock Exchange’s main market for listed securities; and
o the issue of such new Ordinary Shares will not result in such noteholder,
  together with any persons acting in concert with it, holding 30 per cent. or
  more of the voting rights of the Company at any time;

-           the Noteholder will not be able to convert CLNs to the extent that such noteholder, together with anyone acting in concert with them, will hold 30% or more of the voting rights in Everest, unless independent shareholders have given their approval and the Takeover Panel has waived the obligation to make an offer for the entire issued share capital of Everest;

-           the Noteholder may request the payment of interest on the anniversary date of the issue of the CLNs to them or request that the interest is rolled up and capitalised;

-           the interest rate that will be applied to outstanding CLNs s is 6% per annum;

-           the conversion price of the CLNs is a price per Ordinary Share of £0.04;

-           at the end of the term of each tranche of CLNs (or such other date that the Company notifies the relevant noteholders in writing in respect of such tranche of CLNs), Everest will repay the principal amount of such tranche of CLNs not converted, plus accrued interest, by issuing new ordinary shares or cash (at the Company’s election) ; and

-           the CLNs can only be transferred to a party approved by the Directors.

 

As at today’s date, excluding any accrued interest, £254,450 of previously issued convertible loan notes remain outstanding pursuant to convertible loan note deeds (all of which are held by Golden Nice International Group Limited, a company wholly owned by Mr Ziwei Peng), further details of which are set out in the table below:

 


Convertible                           Number of   Old Redemption
Loan Note     Date of                 Convertible Date/ New       Conversion
Issue         Instrument              Loan Notes  Redemption Date Price
                                      outstanding

              1 October 2018
£250,000      (as amended on
unsecured     5 October 2020                      30 September    £0.05 per
convertible   and on 29 July £162,500 3,250,000   2023/ 31 March  Ordinary Share
loan notes of 2022 and 29                         2025
£0.05 each    September
              2023)

              31 March 2021
£750,000      (as amended on
unsecured     29 July 2022                        30 September    £0.05 per
convertible   and 24 January £91,950  1,839,000   2023/ 31 March  Ordinary Share
loan notes of 2023 and 29                         2025
£0.05 each    September
              2023)

Total:                       £254,450 5,089,000



 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

 

The directors of the Company accept responsibility for the content of this announcement.

For further information please contact:

        Everest Global plc
        Andy Sui, Chief Executive Officer +44 (0) 776 775 1787

Rob Scott, Non-Executive Director +27 (0)84 6006 001

Cairn Financial Advisers LLPJo Turner / Emily Staples         +44 (0) 20 7213 0885 / +44 (0)20 7213 0897