B90 shares tumble after Thursday surge

The AIM-traded firm’s shares surged to a peak of 32.81p on Thursday, having opened the day at 12.4p.

It said that, following its return to trading on AIM and the raising of another €1.85m (£1.59m) through convertible loan notes on 17 March, it had €4.39m outstanding under its convertible loan.

The convertible loan had a three-year term and a 5% annual coupon, payable in arrears on 30 June and 31 December, with the first instalment due to be paid on at the end of June 2021.

It said the loan was convertible at any time by the investors at a price of 5p per share, and would automatically convert at the same price if the stock’s closing mid-market price was 10p or more for 25 consecutive business days.

Should the loans be converted in their entirety, it would result in the issue of 75,250,000 new shares, representing 73.2% of its current issued capital.

The firm also agreed with certain creditors that a total of €0.4m would be converted into 6,917,130 new shares at the same price of 5p.

B90 said that, while trading since the end of June had been in line with its revised expectations, it was still reducing its operating costs to match its current operations.

“Whilst the group has raised additional funds by way of the convertible loan, the group continues to remain reliant on being able to manage its cash resources carefully, continuing to manage its creditors and trading being in line with management's expectations,” the board said in its statement.

“Furthermore, should trading not be in line with management's expectations going forward, the group's ability to meet its liabilities may be impacted, in which case the group will need to raise further funding.

“In the circumstance that this is needed and whilst the directors are confident of being able to raise such funding if required, there is no certainty that such funding will be available and/or the terms of such funding.”

At 1141 GMT, shares in B90 Holdings were down 38.48% at 20.3p.