Crossword Cybersecurity Regulatory News (CCS)

1 Feb 2008 13:11

Clarity Commerce Solutions PLC01 February 2008 Clarity Commerce Solutions plc(AIM: CCS, company number 3914814) 1 February 2008 WORKING CAPITAL DRAW-DOWN The Board of Directors (the "Board") of Clarity Commerce Solutions plc ("Clarity" or the "Company"), the AIM listed provider of software solutions andservices to the hospitality, leisure, entertainment and retail markets, confirmsthat on 30 January 2008 it executed a loan agreement and yesterday drew down£600,000 (the "Loan") net of expenses and a 1% facility fee in order to provideClarity with much needed additional working capital in advance of otherfundraising initiatives that are underway. The Loan has been made available from Southwind Limited (an investment companywholly owned by a trust established by Mr ALR Morton) (the "Lender") and isrepayable on the earlier of the Company raising equity funds or the expiry of aperiod ending within one year (the "Term"). In the event that acceptablesecurity for the Loan can be agreed with the Company's bankers and put in place,interest will be charged at a rate of 10 per cent. per annum. Until that timeinterest is payable at 30 per cent. per annum. The Company has the right torepay the Loan in whole or in part at any time during the Term withoutlimitation, and funds from any fundraising will be partly used for this purpose. Given the cash constraints which the Company is currently operating under, whichwere highlighted in the Group's interim statements issued at the end ofDecember, the Board considers the terms of the loan to be acceptable and thearrangement in the best interests of the Company's shareholders. Commenting on the Loan, Ken Smith, Clarity's Group Managing Director, said: "We are very grateful for this short-term funding support whilst a moresubstantial fundraising is concluded. The Company will be writing toshareholders shortly in this regard These phased injections of working capitalrepresent significant steps in the Company's turn around strategy ." For further information, please contact Ken Smith, Group Managing Director (Please call Jacquie Mitchell)Clarity Commerce Solutions plc 01932 778001 Fiona Kindness Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414 Ian Callaway SVS Securities plc (Broker) 020 7638 5600 This information is provided by RNS The company news service from the London Stock Exchange