LONDON (Alliance News) - Reconstruction Capital II Ltd on Friday said it will issue 40.2 million shares after having received conversion notices from the holders of EUR5.4 million of convertible loan notes.
The closed-end investment fund said the holders included its Chairman Dirk Van den Broeck, who applied to convert EUR202,000 of convertible loan notes into shares.
Ian Florescu, a director of Reconstruction Capital's investment adviser, applied to convert EUR2.5 million of convertible loan notes, and Reconstruction Management Ltd, in which Florescu holds an indirect interest, has applied to convert EUR1.1 million convertible loan notes.
The loan notes give the holders the right to receive 7.41 shares for every EUR1.0 face value of the loan note. As such, Reconstruction Capital said it has issued 40.1 million shares, which are expected to be admitted to trading on AIM on October 11.
Following admission, Florescu will be the beneficial owner of 81.4 million shares, giving him a 54.99% stake in Reconstruction Capital. The company did not say how the transaction would change Van de Broeck's holding.
Shares in Reconstruction Capital were untraded on Friday, having last traded at EUR0.235.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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