AEC Education converts loans to shares

AEC Education shored up its finances on Thursday, announcing that it has agreed with certain shareholders that loans from them amounting to £853,951 will be converted into ordinary shares in the company at a value of 5p per share.

The AIM-traded firm has agreed that £646,000 of its outstanding loan balance with KSP Investments, and £207,951 owing to CG Corporation, will be converted.

“As each of KSP and CG Corp are substantial shareholders in the Company, the Loan Conversions are classified as related party transactions for the purposes of AIM Rule 13,” AEC’s board said in a statement.

“Liam Swords, an independent director for these purposes, considers, having consulted with WH Ireland Limited, the Company's nominated adviser, that the terms of the Loan Conversions are fair and reasonable insofar as the Company's shareholders are concerned.”

As a result of the loan conversion, KSP and CG will be issued with 12,920,000 and 4,159,020 new ordinary shares respectively.

The company has made application for the 17,079,020 new ordinary shares to be admitted to trading on AIM, with dealings expected to commence on 15 June.