Paragon has confirmed that its shareholders have voted unanimously in favour of its proposed rights issue at its Extraordinary General Meeting today.
The buy-to-let specialist lender had announced to the stock market in November that it would have to do an emergency rights issue as a result of funding problems caused by the credit crunch.
It has since revealed that it will not be accepting any new lending from February 28 as its warehouse loan facility is not being renewed.
As a result of today’s EGM, the 1 for 10 share consolidation of the company’s Existing Ordinary Shares will take place at the close of business today, 28 January 2008.
Apart from the change in nominal value, the New Ordinary Shares arising on
implementation of the Share Consolidation will have the same rights as the
Existing Ordinary Shares, including voting, dividend and other rights.
The Rights Issue is conditional upon the New Ordinary Shares of the Company
being admitted to the Official List and to trading on the main market for listed securities of the London Stock Exchange.
Application has been made to the UKLA for the New Ordinary Shares (nil and fully paid) to be admitted to the Official List and to the London Stock Exchange for the New Ordinary Shares (nil and fully paid) to be admitted to trading on the London Stock Exchange’s main market for listed securities.
It is expected that admission will become effective and that dealing in the New Ordinary Shares will commence on the London Stock Exchange, nil paid, at 8.00 am on 29 January 2008.