29 Jan, 2008
Tanya Powley - 28-Jan-2008
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
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
implementation of the Share Consolidation will have the same rights
Existing Ordinary Shares, including voting, dividend and other
The Rights Issue is conditional upon the New Ordinary Shares of the
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.