30 Apr 2014 12:00
Fitbug Holdings Plc / Epic: FITB.L / Index: AIM / Sector: Leisure
30 April 2014
Fitbug Holdings Plc ('Fitbug' or 'the Company')
Agrees extension of all loans to mid 2015 and secures additional £1 million loan on attractive terms
Legal action against Fitbit on course for court decision in 2015.
Fitbug Holdings Plc, the AIM listed provider of online personal health and well-being services, is pleased to announce that it has agreed that the repayment date of all loans to the Company from NW1 Investments Limited and Kifin Limited, a Kirsh Group subsidiary, be extended to 31 July 2015. Other terms remain unchanged including the interest rate which remains at 5%.
The Company is also pleased to announce that it has agreed a further £1 million loan ('the Loan') from NW1 Investments Limited ('Loan Holder'). The Loan is repayable by 31 July 2015 and will accrue interest at 5% per annum, payable on a quarterly basis. NW1 Investments Limited is a company in which the family of David Turner and Allan Fisher, both directors of Fitbug, have a material interest.
The independent directors of the Company, being Fergus Kee, Malcolm Fried, Paul Landau, Ann Jones, Geoffrey Simmonds and Andrew Brummer, consider, having consulted with Cantor Fitzgerald Europe, that the terms of the Loan are fair and reasonable in so far as shareholders are concerned.
The Company's legal action against Fitbit alleging trademark infringement, as well as unfair competition and unfair business practices, continues to progress and is scheduled to go to trial in the U.S. District Court for the Northern California in early 2015.
Fergus Kee, Chairman of Fitbug said, "This term extension on existing loans and the additional loan capital, both on attractive terms, significantly strengthens the Company's financial position at a time of strongly growing demand for wearable technology. We have an exciting pipeline of business ahead and we look forward to developing this and continuing our investment into both our sales strategy and product."
**ENDS**
For further information contact:
Paul Landau/Andrew Brummer | Fitbug Holdings Plc | 020 7449 1000 |
Mark Percy/Catherine Leftley | Cantor Fitzgerald Europe | 020 7894 7000 |
Claire Louise Noyce / William Lynne | Hybridan LLP | 020 7947 4350 / 020 7947 4361 |
Elisabeth Cowell/Charlotte Heap | St Brides Media & Finance Ltd | 020 7236 1177 |
Notes
Fitbug is a leading provider of online health and well-being services to help individuals to improve their lifestyles by making realistic changes to their daily routine. It combines activity tracking devices, which download to the Fitbug app and fitbug.com to provide an understanding of each user's daily activity achievements, with mobile and web technology providing users with personalised weekly activity and nutrition targets, feedback, advice and encouragement.
Key market sectors and distribution channels include retail, health insurance and rewards providers, workplace health programmes fitness operators and consumers. Increasingly, Fitbug's platform acts as the driving force behind third party services such as white label sites, activity driven games and challenge microsites and rewards programmes. The Company's main focus is now on building strategic partnerships with organisations that can integrate Fitbug into their own service/product offerings or resell to their customer base. The Company has operations in the UK, Australia and Asia, with the United States remaining the primary market. For more information, visit www.fitbug.com.
The Fitbug business was founded by Paul Landau, CEO of Fitbug Limited. Fergus Kee, Chairman of the Company is the former Managing Director of Bupa's £2.1 billion turnover UK and North American Division.