LONDON (Alliance News) - eServGlobal Ltd on Wednesday said it has repaid the AUD3.0 million loan due to National Australia Bank.
Separately, the mobile financial services provider said it has entered into a new loan facility agreement for up to GBP1.0 million with Henderson Global Investors. eServGlobal already owes Henderson GBP10.0 million in debt.
eServGlobal said it will draw down GBP0.5 million of the new loan immediately in order to meet general working capital requirements. The remaining GBP0.5 million may be drawn at any time between May 1 and October 31, and the whole loan is due for repayment on June 4, 2017.
In addition, 8 million options over eServGlobal's shares have been issued to Henderson as a facility fee for the new loan. The exercise price will either be 4.375 pence or a 20% discount to the 60-day volume weighted average price for a depository interest, whichever is lower.
"As previously announced, the company has been focusing on reducing costs and improving cash collection across the group whilst building the sales pipeline for quarter-two onwards. Whilst the conclusion of key sales opportunities remain uncertain as to timing, the pipeline is improving and this further cash injection should ensure the company is in a stronger position to realise that pipeline," Executive Chairman John Conoley said in a statement.
"We expect working capital to improve across the second half of this financial year with the expected recovery in orders," he added.
Shares in eServGlobal were untraded on Wednesday, last quoted at 4.35 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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