8 Feb 2016 07:00
8 February 2016
DDD Group plc
Issuance of Secured Loan Note
DDD Group plc ("DDD" or the "Company") is pleased to announce that the Company has entered into an agreement with Arisawa Manufacturing Company Ltd. ("Arisawa") for an $800,000 Secured Loan ("Loan") pursuant to the existing authorities granted to the board of directors. The Loan is secured by the Company's US 2D to 3D conversion patent number 6,477,267 and its international counterparts.
Highlights
· Issuance of $800,000 Secured Loan due June 30th 2016 has been completed under existing authorities
· The net proceeds (approx. $795,000) to be used to finance business development and licensing activities for the Company's new TriDef SmartCam and UPix products and additional intellectual property licensing activities.
Further details of the Loan are set out below.
Commenting on the transaction, Nicholas Brigstocke, Chairman of DDD said:
"As we continue to grow the Company's new 2D solutions in the game casting and video conferencing markets, we are pleased to be able to announce a successful capital raising which will assist the Company in accelerating our licensing activities for our 2D and 3D intellectual property.
The affiliate licensing program for our new TriDef SmartCam products continues to deliver promising results and end user reaction is very encouraging with strong growth in downloads and an increasing awareness to the innovative solution amongst larger prospective licensees and partners.
We anticipate releasing our UPix social photography app in the Google Play store later this month which should further demonstrate the applicability of our newest solutions to large growth markets.
With the momentum behind the new 2D products, we are also planning to place more emphasis on our wholly owned GenMe Inc. subsidiary to accelerate the commercialization of the new products. The additional capital will strengthen the financial resources of the Company as we continue our return towards operating cash break-even."
Enquiries
DDD Group Chris Yewdall, President & CEO Victoria Stull, CFO
| +1 310 566 3340 |
Peel Hunt LLP (UK Nomad/Broker) Richard Kauffer / Euan Brown
| +44 (0)207 418 8900 |
Beaufort Securities (Joint broker) Jon Levinson / Elliot Hance
| +44 (0)207 382 8300 |
Berns & Berns (US PAL) Michael Berns, esq. | +1 212 332 3320 |
About DDD
DDD transforms the visual experience. Its advanced imaging and TriDef® solutions are licensed by leading brands including Samsung, LG and Lenovo for use in TVs, tablets and PCs. Over 55 million 3D products have been shipped by DDD's licensees worldwide. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM: DDD) and the OTCQX (DDDGY). For more information please visit www.DDD.com.
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Details of Secured Loan Note
The Loan has been established under the authority granted to the board of directors pursuant to Section 114 the Company's Articles of Association.
The following is a summary of the main provisions of the Loan. The Loan has an annual interest rate of 10%. Loan interest is paid at the end of each calendar quarter. The loan is repayable on or before June 30th 2016 or as otherwise mutually agreed between the Company and Arisawa. The loan may be repaid without penalty in whole or in part together with any accrued interest. In the event that the Company receives any intellectual property settlement and/or secures additional funding or other similar monetization event, it has agreed to apply the net proceeds to repaying the Loan prior to using the proceeds for repaying any other convertible loan notes in issue from the Company.
In the event that the Company is in breach of the terms of the Loan and has not remedied the breach within the period of time allowed, Arisawa has the right to acquire ownership of the Company's US 2D to 3D conversion patent number 6,477,267 and its international counterparts. Acquisition of the patent will not provide any rights or interest in license agreements related to the secured patents that are currently in effect that yield royalties to the Company.
Arisawa Manufacturing Co., Ltd. is currently a holder of 15.7% of the existing issued ordinary share capital of the Company. The transaction is a related party transaction for the purpose of AIM Rule 13, Arisawa being a related party within the meaning of the AIM Rules. The directors of the Company who are independent to this transaction, Nicholas Brigstocke, Paul Kristensen, Hans Snook, Victoria Stull and Christopher Yewdall consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the shareholders are concerned.