MoneySwap Plc Update on refinancing (9862U)
January 24 2017 - 8:02AM
UK Regulatory
TIDMSWAP
RNS Number : 9862U
MoneySwap Plc
24 January 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
24 January 2017
MoneySwap plc
("MoneySwap" or the "Company")
Update on refinancing - short term loan
Further to recent announcements regarding the Company's
refinancing activities, Moneyswap announces that the Company has
today entered into a short-term loan agreement (the "Loan
Agreement") with Broad Rivers International Limited ("Broad
Rivers"). Broad Rivers is a substantial shareholder in
Moneyswap.
The Loan Agreement provides for a total unsecured loan facility
of USD 500,000 to be made available by Broad Rivers to Moneyswap
for the purpose of providing working capital to the Company to meet
its short-term requirements, ahead of Moneyswap completing a major
refinancing which is likely to result in a third party acquiring in
excess of 51% of the Company's issued share capital.
Under the terms of the Loan Agreement, any amounts drawn down
will carry interest at 5% per annum, payable on repayment of the
loan. Amounts drawn down under the Loan Agreement are at the
discretion of Broad Rivers being satisfied that the funds are
required to meet the urgent financial commitments of the Company.
All amounts drawn down under the Loan Agreement are due for
repayment at the earlier of 31 March 2017 or on the completion of a
major refinancing of Moneyswap. The Company has today drawn down
the first USD100,000 of the facility in order to meet immediate
working capital needs.
As set out in earlier announcements, discussions continue with a
number of parties in relation to a more substantial refinancing and
further announcement will be made in due course. The Company's
shares were suspended from trading on AIM on 21 September 2016, as
it was unable to publish its audited accounts for the year ended 31
March 2016 by 30 September 2016. If the suspension of the Company's
shares is not lifted within six months of the suspension date,
trading in the Company's ordinary shares will be cancelled from
AIM.
As Broad Rivers is substantial shareholder in the Company, the
entering into of the Loan Agreement constitutes a related party
transaction under the AIM Rules. The Directors of MoneySwap, having
consulted with the Company's nominated adviser, Allenby Capital
Limited, consider the terms of the Loan Agreement to be fair and
reasonable insofar as the Company's shareholders are concerned.
- Ends-
For further information, please contact:
MoneySwap Plc Allenby Capital Limited
------------------------ ------------------------
Interim Chief Executive Nominated Adviser
------------------------ ------------------------
Craig Niven Nick Naylor
James Reeve
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+44 7767 497400 +44 20 3328 5656
------------------------ ------------------------
About MoneySwap (www.moneyswap.com)
MoneySwap provides payment solutions and gateways to merchants,
which allow both online and point of sale transactions to be
settled using UnionPay cards in the UK. In addition, UnionPay has
licensed MoneySwap for its MoneyExpress service, which enables
overseas persons to send funds directly to UnionPay cardholders in
China. The Company also offers an online peer-to-peer platform for
currency exchange and payments. The Company's shares are traded on
the London Stock Exchange's AIM market (AIM: SWAP). More
information can be found at www.moneyswap.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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