Minoan Group PLC on Friday said it has strengthened its finances as it continues restructuring its existing loan agreements.

The London-based developer of hotel resort projects in Crete said that in a bid to further bolster its balance sheet, it intends to convert some of its existing creditors into shareholders.

It will issue up to 78 million ordinary shares to settle liabilities of over £1.3 million, adding that it expects some of its directors to participate in the proposed conversion.

Shares in Minoan are up 13% to 0.73p on Friday afternoon in London, giving the firm a market capitalisation of £6.2 million.

In October, Minoan said an agreement had been reached to exchange outstanding loans to the company of £1.1 million into new convertible loans.

The firm noted that it is also currently in advanced discussions with an unnamed strategic partner over the injection of significant new capital into the business to support its project funding commitments at Cavo Sidero in Crete.

Minoan did not provide a timeline for the outcome of the potential investment by the strategic partner.

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