Nexus Management - Issue of Loan Notes and strengthening of the Company’s balance sheet through redemption of $525,000 of VPEP debt
14-06-2010

The Board of Nexus Management Plc, the AIM quoted provider of specialist IT Managed Services, is pleased to announce that it has raised a total of £225,000 ($320,000 US) through the issue of convertible loan notes and conversion of certain warrants. The proceeds will be used to repay outstanding amounts totaling $525,000 due to VPEP Technology Corporation ("VPEP").
 
Issue of Loan Notes

The Company has raised £175,000, before expenses, through the issue of convertible loan notes ("Loan Notes") to the SF t1PS Smaller Companies Growth Fund (“SF t1PS”).

The Loan Notes are subject to an interest rate of 10 per cent. per annum, payable quarterly in arrears, and are convertible on the fifth anniversary of their issue, at a price of 0.4p per share.

The Loan Notes can be converted or redeemed at any point following the third anniversary of their issue; however, in the event the Loan Notes are redeemed they are subject to an early redemption penalty fee of one year's interest.

Issue of warrants

The Company has also issued to SF t1ps £200,000 of warrants exercisable until June 2011 at 0.35p per share (“the Warrants”) of which £50,000 will be exercised immediately.

Following this conversion, SF t1PS will hold 104,429,087 ordinary shares in the Company, representing 9.5% per cent of the issued share capital of the Company.
 
Application will be made for 14,285,714 new ordinary shares to be admitted to trading on AIM. Admission of such shares is expected to become effective and dealings are expected to commence on AIM on 18 June 2010. Following the issue of such shares, the Company will have 1,099,494,622 ordinary shares in issue.

Repayment of VPEP indebtedness

The Company has reached an agreement with VPEP to redeem outstanding amounts due in connection with the acquisition of the assets and certain liabilities of Scott Technology Corporation, which formed the basis of the trading operations of Resilience Technology Corporation.

VPEP has agreed to accept a total of $335,000 in full and final satisfaction of approximately $525,000 of debt outstanding from the Company.
 
Roger Richardson Nexus CEO commented “I am pleased that the Company has been able to satisfy the debt owed to VPEP at a discount to its face value. This enhances the balance sheet of the Company whilst also removing the potential overhang on the Company’s shares arising from VPEP’s conversion rights.”
 

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Enquiries:

Bishopsgate Communications Ltd    
Tel: 020 7562 3350

Gemma O’Hara / Siobhra Murphy

nexus@bishopsgatecommunications.com
 

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