Cobra Bio-Manufacturing has received a £180,000 loan from Sultan Scientific, a medical and environmental company investor.
Cobra manufactures biopharmaceutical ingredients used by drug developers in pre-clinical and clinical trials. Cobra needs the cash for working capital and it is still talking to other potential providers of additional capital for the business. Cobra’s largest shareholder has provided a £50,000 loan repayable in three years time.
The loan is convertible at 1p a share, which would give Sultan 29% of the enlarged share capital. Sultan has an option to subscribe for another £70,000 of convertible loan notes.
Shares in Cobra recovered 0.125p to 2.875p a share, which values the company at £1.27m.
Sultan has the right to appoint a board director and receive management information from that director. Sultan will also receive fees for consultancy work.
Cobra will hold a general meeting to enable shareholders to vote on the issue of the convertible loan notes.
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