Electric Guitar PLC - CVA completed

Company Voluntary Arrangement (“CVA”)

The Board of Electric Guitar (LSE: ELEG) is pleased to announce completion of the CVA, which was approved by shareholders and creditors on 27 March 2025. The CVA involves the issue of new ordinary shares of £0.0001 each in the Company (“Ordinary Shares”) in exchange for the Company’s pre-CVA liabilities. Accordingly, application has been made to the London Stock Exchange plc for the 236,782,175 new Ordinary Shares that were approved for issue to the Company’s creditors pursuant to the CVA (the “CVA Shares”) to be admitted to trading on AIM ("CVA Admission").  It is expected that CVA Admission will become effective at 8:00 a.m. on or around 13 October 2025 whereupon the CVA will complete. 

Conversion of Convertible Loan Note (“CLN”)

The Company also announces that with the completion of the CVA, the outstanding CLN from Sanderson Capital Partners Ltd (‘Sanderson’), as announced on 11 March 2025, will automatically convert into new Ordinary Shares on CVA Admission in accordance with its terms.  Accordingly, 306,665,817 new Ordinary Shares (the “CLN Shares”) will be issued and allotted to Sanderson in full satisfaction of this loan.  Application has been made to the London Stock Exchange plc for the CLN Shares to be admitted to trading on AIM ("CLN Admission") and it is expected that CLN Admission will become effective at 8:00 a.m. on or around 13 October 2025.

As a result of the CVA and the CLN conversion, the Company has become essentially debt free.