The Eco Buildings Group loan note conversion announced this week will add 3,652,366 new ordinary shares to the company’s float, with admission to AIM (the London Stock Exchange’s growth market for smaller companies) expected on or around 17 August 2026.
The shares divide into two groups. 2,500,000 are being issued following a conversion notice on £100,000 of loan notes (debt instruments issued directly by the company to lenders, convertible into shares at a pre-agreed ratio) originated on 4 September 2025. The remaining 1,152,366 shares are being issued in settlement of certain outstanding liabilities.
What the Eco Buildings Group Loan Note Conversion Means for the Share Count
Once admitted, the total issued share capital of Eco Buildings Group will stand at 144,639,749 ordinary shares, according to the London Stock Exchange announcement. The company holds no shares in treasury, so that figure represents the full float.
The new shares rank pari passu (on equal terms in every respect) with existing ordinary shares, as confirmed in the regulatory news service filing. No holder receives preferential treatment over another.
At the current share price of 9.6p, the 3,652,366 new shares carry a market value of roughly £350,000. Across the full enlarged share capital of 144,639,749 shares, the market capitalisation at 9.6p would be approximately £13.9 million. Both figures are illustrative; the 9.6p price was not the conversion price for these shares.
Working backwards from the loan note tranche: £100,000 converted into 2,500,000 shares implies an effective conversion price of 4p per share, a meaningful discount to the current market price. That gap suggests the original note terms were negotiated when the company’s position was weaker, or the lender secured favourable terms upfront.
Dilution in Context: A Pattern of Share Issuance
This Eco Buildings Group loan note conversion is not an isolated event. In August 2024, the company raised £450,000 by issuing 4,500,000 new shares at 10p each, according to its final results announcement on the London Stock Exchange. In May 2025, Eco Buildings Group raised gross proceeds of £670,000 through a firm placing, as disclosed in a separate LSE fundraise announcement.
Those earlier rounds brought fresh cash into the business. This week’s issuance works differently: the loan note tranche converts £100,000 of debt into equity, removing that obligation from the balance sheet but bringing in no new money. The liability-settlement tranche pays obligations in shares rather than cash. Both mechanisms dilute (reduce the proportional ownership stake of) existing shareholders without adding to the company’s cash resources.
The 3,652,366 new shares represent about 2.5% of the enlarged share capital of 144,639,749. That is a modest percentage in isolation, but when set alongside the August 2024 and May 2025 issuances, it reinforces a picture of a business that has consistently turned to its share register to manage obligations.
What to Watch From Here
The announcement does not specify the nature or total value of the liabilities settled by the 1,152,366 shares. Further disclosure would help shareholders judge whether the company’s working capital position is stabilising or whether additional equity-for-liability settlements are in prospect.
Admission is expected on or around 17 August 2026. Any further conversion notices on the outstanding loan notes, or additional liability settlements in shares, would constitute further dilution events. Shareholders should keep an eye on regulatory announcements from ECOB via the London Stock Exchange.
