New Issue: Hertford lifts convertible loan to £1.75 million

By Devika Patel

Knoxville, Tenn., March 24 - Hertford International Group plc said it has increased a convertible loan to £1.75 million from £1.25 million. The investor is Dexapoint United Corp.

The loan will bear interest at 10% and is convertible into ordinary shares. It will be repaid in installments by Dec. 31, 2011.

For conversions up to and including on Dec. 31, 2009, the conversion price will be 13p per share; for conversions between Jan. 1, 2010 and Dec. 31, 2010, the conversion price will be 15p per share; and for conversions between Jan. 1, 2011 and Dec. 31, 2011, the conversion price will be 17p per share.

As part of the agreement, the numbers of warrants attached to the loan have been increased proportionally.

The investor will receive warrants for 500,000 shares, exercisable at 20p, warrants for 2,916,666 shares, exercisable at 15p, and a warrant for one share for every four shares converted under the loan, limited to a maximum of 3,365,385 shares, also exercisable at 15p.

Hertford is a Surrey, England-based sales and marketing company.

Issuer:	Hertford International Group plc
Issue:	Convertible loan
Amount:	£1.75 million
Maturity:	Dec. 31, 2011
Coupon:	10%
Price:	Par
Yield:	10%
Conversion price:	13p (until Dec. 31, 2009), 15p (Jan. 1, 2010 through Dec. 31, 2010), 17p (Jan. 1, 2011 through Dec. 31, 2011)
Warrants:	For up to 6,782,051 shares
Warrant strike price:	20p (for 500,000 shares), 15p (for 6,282,051 shares)
Investor:	Dexapoint United Corp.
Pricing date:	March 24
Stock symbol:	London: HIG
Stock price:	14p at close March 24

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