swap19 Dec 2012 23:57
MoneySwap Plc
("MoneySwap", the "Group" or the "Company")
Issue of US$350,000 of convertible loan note
and
Receipt of US$1,937,000 of unsecured loans
Issue of convertible loan note
MoneySwap Plc (AIM: SWAP), the Asia focused prepaid card and online payment services provider, is pleased to announce that its wholly owned subsidiary, Money Swap Exchange Limited ("MSEL"), has issued convertible loan note totalling US$350,000 (the "Loan Note").
The funds received from the Loan Note will be used to develop the Group's new lines of business in co-operation with China UnionPay, further details of which have been announced previously, as well as for general working capital purposes. Moving forward, the Directors anticipate that the Group's relationship with China UnionPay will be increasingly more important and will become the Group's major revenue stream.
The Loan Note carries a 10% annual coupon and has a maturity date of 6 December 2014 (the "Maturity Date"), at which point the note holder may request repayment of the outstanding principal, plus any accrued interest. Should an individual note holder not request repayment at the Maturity Date by giving not less than two months prior written notice, their principal repayment date shall automatically extend for a further 12 months. MSEL has the option to repay all or part of the Loan Note, plus any accrued interest, at its discretion, at any time from six months after the issue of the Loan Note until the Maturity Date by giving not less than one month prior written notice.
Any principal amounts outstanding under the Loan Note at the Maturity Date may be converted, at the discretion of the note holder, either in whole or in part, into new ordinary shares of MoneySwap (the "Conversion") by giving not less than two months prior written notice. The price of the Conversion shall be calculated as a 10% discount to the average closing price of an ordinary share in MoneySwap on AIM for the 10 business days prior to the Maturity Date.
Chee Boon Lee, CFO, said: "We are delighted to be able to announce this loan note. The funding that it provided places us in a better position to be able to invest in the necessary IT and payment system development as well as increase the marketing effort that is required to expand our relationship with China UnionPay."
Receipt of US$1,937,000 unsecured loans