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(Sharecast News) - Gambling technology firm Webis has settled an arrangement with Galloway, it announced on Friday, to issue £1.15m in convertible loan notes.
The AIM-traded company said the sum combined £0.75m of new funding provided by Galloway and the settlement of an earlier loan from 2017 approaching its due date.
It said the fresh injection of £0.75m would act as a catalyst for Webis to amplify its efforts in the business-to-consumer (B2C) arena - a domain identified by the company for its considerable growth promise.
The earmarked use of the fund was towards enhancing the software infrastructure of its flagship website, Watchandwager, and intensifying the marketing strategies for its mobile variant.
Despite having minimal initial investments, the company said the platform had yielded positive results, especially in the US market.
The convertible notes, amounting to £1.15m, encompassed £0.75m from the recent funds forwarded by Galloway and a settled debt of £0.4m.
The latter was converted from an outstanding $0.5m.
Webis said the notes could be converted into ordinary shares under specific conditions, such as after an equity fundraising of at least £0.75m, during a company control change, or at Galloway's discretion.
If not transformed within five years from the issue date, they would be converted at the default price, which stood at 1.56p.
The notes would be repayable in cash in case of a default or based on the company's decision.
An 11% per annum interest rate would apply to the convertible notes, with the interest either repaid or converted to cash or company shares.
As long as the notes funds remained outstanding, Galloway would have the right to nominate an additional director to Webis' board.
"Webis is very pleased to receive further backing from our principal shareholder," said managing director Ed Comins.
"Their expression of support is important for the company and compares favourably with other potential forms of funding considered. Webis stands in an excellent position in the US gambling market, particularly with our array of content and licensed presence in the US, particularly California.
"These are key assets that are not readily available to new entrants into the market, and we look forward to continued discussion regarding any potential partnerships, mergers, opportunities, and acquisitions to continue to build our strength."
At 1014 BST, shares in Webis Holdings were up 1.04% at 1.47p.
Reporting by Josh White for Sharecast.com.
