Graphene NanoChem plc (AIM:GRPH) announced that it has entered into subscription agreements for a private placement of 100 unsecured convertible loan notes at a price of £22,500 per note for gross proceeds of £2,500,000 on December 22, 2016. The transaction will include participation from Darwin Capital Limited. The loan notes are zero coupon and unsecured. The notes carry a principal value of £25,000, and will be issued at a discount of 90%. The loan notes will be redeemed at 105%. The notes are convertible into new ordinary shares of £0.01 nominal value each at a conversion price of lesser of £18.4375 per new ordinary share or 90% of the arithmetic average of five daily volume weighted average share price calculations selected by Darwin Capital Limited out of the twenty trading days prior to conversion. The company will also issue warrants equal to 25% of the loan notes. Each warrant will be exercisable into ordinary shares at an exercise price of £18.4375 for a five year period. The company will issue loan notes in three tranches.