Improved Loan Facility
October 02 2007 - 2:01AM
UK Regulatory
RNS Number:9216E
e-pay Asia Limited
02 October 2007
ASX / AIM: EPY
e-pay Asia Limited
e-pay Asia Limited is a leading provider of electronic payment solutions and top
up services for prepaid mobile users in South East Asia
Improved Loan Facility Agreed
The Board of e-pay Asia Limited ("EPY" or the "Company") is pleased to announce
that it has renegotiated more favourable terms with Cornell Capital Partners
Offshore LP ("Cornell") in relation to a convertible loan note of US$2.65m
issued in November 2006.
Under the terms of this initial agreement, the notes carried interest of 7.95%
per annum with Cornell entitled to convert the notes into the Company's shares
within certain parameters. Cornell has converted part of the loan note into
shares which the Company believes has generated a downward selling pressure on
its shares.
In order to address this situation new terms have been agreed with Cornell
whereby EPY has agreed a monthly cash repayment schedule over a shorter term
with an option for immediate repayment of the loan in full. The outstanding
balance of the loan before any monthly repayments is US$1.9m.
During the period, Cornell is allowed to convert the loan into shares in EPY
only when the share price is above A$0.13. In addition, all 5,375,000
outstanding options granted to Cornell have been cancelled. The current total
number of outstanding options in the Company is 8,353,490.
The new terms will remove the finance costs associated with the options, which
are now cancelled, as well as remove the associated downward pressure on the
Company's share price.
For more information:
Australia
Jack Tan e-pay Asia Limited +614 1828 6266 / +612 9283 8835
Company Secretary jtan@epay-asia.com
Asia
Yap Chih Ming e-pay Asia Limited +601 7229 1616 / +603 5632 2488
Chief Financial Officer investor@epay-asia.com
UK / Europe
John Croft e-pay Asia Limited +44 7785 315 588
Non-executive Chairman jcroft@epay-asia.com
David Newton Seymour Pierce +44 20 7107 8000
Nominated Adviser davidnewton@seymourpierce.com
Shane Dolan Biddicks +44 20 7448 1000
Financial Public shane.dolan@biddicks.co.uk
Relations
www.epay-asia.com
This information is provided by RNS
The company news service from the London Stock Exchange
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