Shareholders of Aim-listed alternative finance group GLI Finance have voted in favour of proposals for a fundraising, refinancing, and restructuring of the business.
At a shareholder meeting held earlier today (4 December), investors agreed to raise up to £4m of new equity and refinance existing bonds by issuing up to £15m of new debt.
Both of these proposals are to be supported financially by GLI’s largest shareholder, Somerston Group.
These funds will be used to repay the existing bonds, to finance a potential tender offer of ZDP shares and to recapitalise the company following the business restructuring.
Furthermore, GLI’s shareholders agreed to extend the group’s credit facility with the Honeycomb Investment Trust to a maximum of £75m, from the current £45m.
“I would like to thank the company’s stakeholders; ordinary & zero dividend preference shareholders; bondholders and Pollen Street Capital, managers of the Honeycomb Investment Trust, for their support in our capital raising initiative,” said Andy Whelan, chief executive officer of GLI Finance.
“Clearly it is all the more challenging to complete such a process during an unprecedented global healthcare and economic crisis.
“We are delighted with its success.”
GLI Finance will also proceed with a rebranding, although a new name has yet to be revealed.
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