News blog

LZYE Group

• BY: Andrew Hore |
• POSTED: 22/05/2013 |

Hong Kong-based childrens’ educational services provider LZYE Group is raising up to £3m via a two-year convertible loan note issue.

The cash will be used to cover working capital requirements. The annual interest rate will be 12% and the loan notes are repayable on 14 May 2015. Alternatively, they can be converted at 8p a share. Last summer, LZYE raised £1.5m at 8p a share. So far, £200,000 has been raised.

LZYE has ten educational centres in China and it wants to add a further 20-30 centres. Management admits that it is taking longer to grow the business than originally envisaged. Revenues rose 17% to HK$10m in the six months to September 2012 but this was still less than employee expenses. The underlying loss was HK$13.4m.

At 5.88p a share, LZYE is valued at £14.5m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf