Secured loan note update
Posted on: Friday, July 24, 2009

Meldex announces that the amount raised up to the 22nd July 2009 through the Secured Loan Note (“SLN”) offering was £1,455,000. The directors announced on 22nd July 2009 the extension of the offering through to the 11th August 2009.

The Company has tried to minimise dilution of existing shareholders through the proposed conversion price of the SLN. However, as subscriptions have so far fallen short of the minimum amount required under the SLN offering, the Company considers it prudent to reduce the price of the proposed conversion in order to seek to ensure the success of the SLN offering.

Therefore, the directors intend, as soon as reasonably practicable following the completion of the SLN offering, to call a General Meeting of Members at which a resolution will be put to Members to increase the ordinary share capital by an amount sufficient to allow the conversion of any convertible loan note offered in substitution for the SLN into ordinary shares at a conversion price of 2p per share. The circular that was sent to shareholders on or around 25 June 2009 had referred to a proposed conversion price of 10p per share.

Any Qualifying Shareholder who has not received a copy of the SLN documentation or who would like another application form should contact the Company by calling 01223 394250 or by sending an email to BJM@meldexinternational.com Shareholders who have already subscribed in the SLN offering may complete an additional application form if they wish to subscribe for further secured loan notes.

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