LONDON (Alliance News) - Fitbug Holdings PLC Tuesday said it has signed a GBP1 million loan deal with NW1 Investments Ltd to support its growth plans for this year.
In a statement, the online personal health company said the loan is repayable by July 31, 2014 and will accrue interest at a rate of 5% a year, payable on a quarterly basis. If Fitbug undertakes an equity issue during the loan term, NW1 Investments can elect to convert some, or the entire, loan into new Fitbug shares.
Fitbug directors David Turner and Allan Fisher both have an interest in NW1 Investments.
In its statement, the company said it had experienced strong interest in its Fitbug KiK coaching plan at the 2014 Consumer Electronics Show held in Las Vegas in January, amid strong interest in wearable devices in general.
It said it is therefore putting retail distribution arrangements in place in the US, UK, Europe, Middle East, Asia and Australia.
"It is clear that 2014 will see the relevance of wearable devices move from niche applications into much more mainstream products and markets. The mHealth and mFitness industries are now poised for strong growth and we believe that Fitbug is well placed to share in that growth," Chairman Fergus Kee said in a statement.
Fitbug's KiK is a digital fitness coaching system that comes with its wearable Orb movement and sleep tracking product.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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