LONDON (Alliance News) - ANGLE PLC Wednesday said that Chief Executive Andrew Newland "will not be drawing down any further funds" under a share sale and repurchase agreement with Equities First Holdings LLC.
Similar share agreements between Equities First and directors of other AIM-listed companies, including Quindell PLC, IQE PLC, Cloudbuy PLC, and Optimal Payments PLC, have drawn the attention of investors and market commentators who have sought clarity on their precise nature.
According to ANGLE, Newland had agreed the deal with Equities First in order to "bridge the purchase and renovation of a new house".
On October 21 last year, the company had said that Newland had agreed to transfer up to 3.5 million shares in the company as security for a loan facility in connection with his moving house.
On November 12, ANGLE provided further detail on the transaction, describing it as a sale and repurchase agreement intended to provide financing to Newland.
That meant he transferred the legal and beneficial interest in 1.35 million shares to Equities First in return for a payment of a sum equal to 62% of the three-day average mid-price per share less a financing arrangement fee of 2%.
As the legal and beneficial holder of the transferred shares, Equities First may take "any action it deems appropriate in relation to the transferred shares and is under no obligation to hold or retain the transferred shares".
On the maturity date of the deal, Newland was said to be "contractually obliged to purchase the transferred shares or equivalent ordinary shares" from Equities First at a price equal to 67% of the starting market price and Equities First was "contractually obliged" to deliver the transferred shares or "equivalent" ordinary shares to Newland on payment.
If, prior to the maturity date, which is October 27, 2016, the value of the transferred shares were to fall to 49.6% or less of the starting market price, Newland would be required to transfer further shares or provide cash to cover any difference.
The starting market price was GBP0.851.
Newland was not immediately available for comment.
Angle shares were quoted down 4.8% at 59.50 pence on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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