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LONDON (Alliance News) - Toople PLC on Tuesday said it has raised GBP622,231 through a share placing to repay debt and invest further in the business development.
The telecom services provider said it issued 189.2 million shares at a price of 0.35 pence each. Toople shares were trading 2.7% lower on Monday in London at 0.36p each, giving it a market capitalisation of GBP3.4 million.
Following completion of the placing, the company's issued share capital will comprise of 1.14 billion shares.
The company said it will use the funds to redeem the outstanding loan to the company from David Breith at a substantial discount to its book value, as well investing further in the business to accelerate the sign up of new customers.
Breith lent funds to Toople when he was a director. At the time of the company's admission on London Stock Exchange, in May 2016, Breith had made loans totalling GBP750,000. It was interest free and not repayable for three years from admission and then only in the event that the company is in profit and has sufficient funds to make the repayment.
Toople said that in May 2017, it entered into a deed of variation to restate the balance owed under the loan to GBP606,756.
The conditions for repayment of the loan have not yet been met and so the amount outstanding remains at the restated balance of GBP606,756. Toople said Breith has now agreed to accept a payment of GBP150,000 in full and final settlement of the loan, subject to this payment being made by the end of May.
"We were approached by our brokers, who had received demand from their clients to invest further in our business as they are pleased with the substantial financial and operational progress we have made in the last twelve months. Given the demand and the opportunity to repay the Company's debt at a significant discount to book value, the Board believes that the Placing is very much in the interest of all shareholders," said Chief Executive Andy Hollingworth.
"Once the Loan has been repaid, the company will use the remaining funds raised to invest further in its digital marketing strategy to increase the rate of customer enquiries and correspondingly to improve conversion rates," added Hollingworth.
