Westminster issues £1.2m in loan notes to support projects

Westminster Group, an AIM listed supplier of security services and technology, has signed agreements for the issuance of £1.2m convertible unsecured loan notes (CULN) to support expansion projects in the Middle East and Asia.

The company is in discussions regarding a large scale long term Middle East airport security project and is progressing another similar project in Asia. The size and complexity of these projects, particularly the Middle East airport, has necessitated extensive pre-contract expenditure around professional and preparation costs including the establishment of an office in mainland Europe.

The loan notes have been issued to Darwin Capital. The CULN is unsecured, has a zero coupon attached and will be divided into 48 individual notes with a par value of £25,000 each.

For each loan note issued the company will receive 90% of the par value equivalent to £22,500 per individual loan note.

If the loan noted were fully converted at the mid-market closing price of 21.75p on 21 November 2016 they would represent 6% of the group’s enlarged capital.

The share price fell 29.19% to 15.40p at 1548 GMT on Tuesday.