First Capital receives life line
A group of sophisticated investors has offered to recapitalise struggling financial services firm First Capital Group, through $3 million of redeemable convertible secured notes.
Under the proposed agreement, for every $1 raised the convertible note holders will receive 25 shares along with 12.5 free options exercisable at $0.08 per option.
The terms will be subject to a three-year period, with a yearly coupon rate of 10 per cent.
First Capital’s managing director Tom Wallace said: “The approach by this investor group reflects confidence in the continued restructure of the group and in the future value and growth in First Capital’s underlying funds management business.”
More details will be forthcoming after a proposed shareholders meeting to be held later in the year.
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