- Tiziana Life Sciences, a clinical stage biotechnology company, said holders of the company's convertible loan note (CLN) have passed the resolutions to convert all of the loan notes to shares.

It was proposed that CLN holders be offered an additional bonus coupon of three years of interest at the relevant applicable rate of return for agreeing to the immediate conversion of the CLNs into ordinary shares.

The CLN holders have now agreed to the proposal and the company has issued 27,645,013 new ordinary shares to the CLN holders. All of the new shares are subject to a restriction on disposal for a period of 12 months.

Admission of the new ordinary shares is expected to occur on or around 21 August 2017.

The enlarged issued share capital of the company will comprise 123,827,938 ordinary shares of 3p each.

Tiziana also proposed to vary the terms of the warrants associated with the CLNs by extending the exercise period of these warrants to 31 December 2021. The warrant holders have agreed the proposal, including acceptance of the condition that the ordinary shares they receive upon conversion of the warrants will also be subject to a restriction not to dispose of the relevant underlying shares for a period of 12 months following exercise of the warrants.

Accordingly the full £12,969,219 (at par value) of the CLNs have now been converted into ordinary shares (including accrued interest), resulting in the issue of 27,645,013 new ordinary shares in the company.

Gabriele Cerrone, chairman of Tiziana Life Sciences, said: "Now that we have moved into Phase II clinical trials we have been focusing on increasing our exposure to both institutional investors and other international trading markets.

"The successful conversion of all of our convertible debt into equity was strongly supported by our CLN holders reflecting their vote of confidence in Tiziana's pipeline and business plan. I welcome them as shareholders. The conversion of the CLNs simplifies our capital structure, which will help our process in improving both the liquidity and visibility in the trading of our shares."

At 8:19am: [LON:TILS] Tiziana Life Sciences Plc share price was -2.5p at 147.5p

Story provided by