Industry News by Nemesis

Paragon’s Nominated Adviser Quits as London Shares Remain Suspended

November 27, 2015

Paragon Diamonds, listed on London’s Alternative Investment Market, announced its nominated adviser and broker resigned with immediate effect following thesuspension of trading in the miner’s shares earlier this month. 

Northland Capital Partners Ltd. advised Paragon on its listing responsibilities, the miner said in a statement November 24. If a replacement is not appointed within a month, the company’s admission to AIM will be cancelled.

Paragon requested a halt in trading November 16 amid “material uncertainty” over its financial position and negotiations with lenders over a funding package to complete the acquisition of the Mothae mine from Canadian mining group Lucara Diamond Corp. as well as repayment of debt, including a $754,420 (GBP 500,000) loan, according to a statement issued on the day.

Following talks with creditors, the borrowing was re-classified as convertible loan note with a value of $963,970 and maturity extended to May 30, Paragon said in a separate statement November 20. The lenders is entitled to convert some or all of this debt into shares.

The lenders may call a default if Paragon’s shares remain suspended for 10 consecutive trading days from November 16 or more than 30 days in a calendar year, the November 20 statement warned.

 

Source: Rapaport

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