LONDON (Alliance News) - YOLO Leisure and Technology PLC on Wednesday said it has conditionally raised GBP566,000 through the placing of 37.7 million shares at 1.5 pence each.
As part of the placing, YOLO will also issue 9.4 million warrants to subscribe for new shares in the company at 1.8 pence each, on the basis of one warrant for every four shares acquired.
YOLO intends to use the proceeds of the placing for investment, general working capital and to further increase the company's cash reserves.
YOLO said it has also agreed to invest a further GBP257,384 in Simplestream Ltd, through the acquisition of convertible loan notes. The loan notes bear an interest rate of 8% per year and are repayable on or before July 16, 2018.
In the event that the loan notes are not repaid by that date, or if Simplestream raises at least GBP500,000 through an issue of equity, YOLO has the option to convert the loan notes into equity shares in Simplestream.
YOLO acquired a 5.1% stake in Simplestream for GBP550,000 in February last year. Simplestream provides cloud-based video platforms.
Shares in YOLO were trading up 1.9% at 1.61 pence on Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.