Koovs plc (AIM:KOOV) announced that it has entered into non-binding heads of terms for private placement of secured convertible loan notes for gross proceeds of up to £18,900,000 on July 21, 2017. The transaction will include participation from certain investors for £8,900,000 including Lord Waheed Alli, director of the company for £7,400,000. The term of the notes is 24 months from completion of the issue of the notes. The notes are convertible into common shares of the company at a fixed conversion price of £0.40 per share. The notes carry interest rate of 3 months sterling LIBOR plus 6% per annum, calculated monthly and rolled up with the payment at the end of the term. The notes are redeemable and secured in nature. The transaction is subject to the agreement of the terms of the transaction. The company has received commitments for £7,500,000 and expects to receive further commitment of £2,500,000. The company expects to issue notes in two tranches. The period to participate in the transaction commences from the date of announcement till July 24, 2017. The transaction is subject to shareholders’ approval.