TIDMTRAC
RNS Number : 8797J
T42 IOT Tracking Solutions PLC
15 December 2022
15 December 2022
t42 IoT Tracking Solutions plc
("t42" or the "Company")
T42 Financial Update
t42 IoT Tracking Solutions plc (AIM: TRAC) (" t42 " or the "
Company "), the provider of global shipping container tracking
solutions, announces that it has raised c. US$611k (gross) through
a combination of debt and equity subscriptions, and arranged
settlement of a further c. US$328k of supplier debt through a
convertible loan, as detailed further below. The new funding will
be used to strengthen the Company's balance sheet as well as to
support its future growth.
Debt Facility
The Company has, through its wholly-owned subsidiary T42
Limited, entered into a loan agreement ("Agreement") with CSS A
lpha Global Pte Ltd ("CSS") for the provision of a 12-month secured
US$500,000 debt facility ("Facility"), to support manufacturing
commitments and working capital needs. The Agreement provides,
inter alia, for interest at 2 per cent per month, with 9 monthly
repayments starting 3 months after drawdown. Security is by way of
a second charge on assets, a personal, guarantee from Avi Hartman,
CEO, limited to 20 per cent of the loan and a deposit with CSS of
3,000,000 new t42 shares ("Deposit Shares"). In addition, warrants
for a total of 2,976,185 shares in t42 have been issued to CSS,
exercisable at 7p per share over 5 years. The Facility includes
representations and warranties by the Company that are customary
for an agreement of this nature. The Agreement is subject to Mr
Hartman not resigning as CEO of T42 Limited during the term of the
Facility. There is no penalty for prepaying the Agreement at any
time.
Convertible Loan
The Company has issued a GBP265,000 convertible loan note
("CLN") to a supplier, to be applied in lieu of settlement of a
supplier debt, assisting with the Company's cashflow management.
The CLN bears interest at 3% per annum, payable quarterly, and is
repayable by 31 December 2024. The CLN is convertible at 9p per
share at the discretion of the holder. In addition, he Company has
the right to enforce conversion of GBP100,000 of the CLN in the
event t42's share price exceeds 12p and the balance if the share
price exceeds 15p.
Equity Subscription
The Company has raised GBP90,000 through the subscription by
12.64 Fund, a fund managed by A-LABS Finance & Advisory Ltd,
for 1,000,000 new Shares at 9p per share, representing a market
premium of over 40% as of the last market close.
Admission
The new Shares will rank pari passu with the Company's existing
ordinary shares, and application will be made to the London Stock
Exchange plc for the admission of the 4,000,000 new Shares to
trading on AIM. It is expected that such admission will be
effective and dealings will commence on or around 21 December
2022.
Total Voting Rights
Following admission of the Deposit Shares and the Shares
pursuant to the equity subscription there will be 57,026,822 Shares
in issue, each with one voting right. The Company does not hold any
Shares in treasury. This figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under
the FCA's Disclosure Guidance and Transparency Rules.
Avi Hartmann, CEO of t42, commented : "We are pleased to have
secured this funding which will support the ongoing orders flow
during this challenging era in the Global environment. Our pipeline
remains strong though mainly expected to deliver sales during the
first half of 2023 and beyond"
The information communicated in this announcement is deemed by
the Company to constitute inside information for the purposes of
Article 7 of as stipulated under the Market Abuse Regulation (EU)
No. 596/2014 as it forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018, as amended.
Contacts:
t42 IoT Tracking Solutions PLC
Michael Rosenberg, Chairman 07785 727595
Avi Hartmann, CEO +972 5477 35663
Strand Hanson Limited (Nominated Adviser and
Financial Adviser)
James Harris/ Richard Johnson/ Robert Collins 020 7409 3494
Peterhouse Capital Limited (Broker)
Lucy Williams/Charles Goodfellow/Eran Zucker 020 7469 0930
Yellow Jersey PR (Financial PR) 020 3004 9512
Tom Randell/Henry Wilkinson/Annabelle Wills t42@yellowjerseypr.com
Notes to Editors
t42 IoT Tracking Solutions plc (AIM: TRAC), formerly Starcom
Systems plc, provides real-time tracking, analysis, monitoring, and
security IoT solutions for the global container and freight market
and covers 55 countries, over 100 distributors, and 50 logistics
and support partners.
t42's multi-sensor IoT tracking devices use a wide range of
detection capabilities with cloud-based analytics and alerts, with
real-time data transmission, analysis, and actionable insights. Its
devices are used by ports, cargo owners, shipping companies,
freight forwarders, insurance companies, customs authorities,
homeland security, and police for end-to-end global container
tracking and digital transformation of shipments.
For more information on the Company, please visit:
www.t42.co.uk/ .
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END
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