Sign In
29 May 2007 07:00
Parallel Media Group plc (`PMG' or the `Company') Financing Arrangement
Parallel Media Group plc (AIM:PAA) announces that it has entered into a medium term financing arrangement with Trafalgar Capital Specialized Fund ("Trafalgar") to raise Euro500,000 with an option to draw down a further Euro250,000 in July 2007. Under the terms of the arrangement PMG the loan is to be repaid over 24 months either in cash or, at the option of PMG, via the issue of new ordinary shares at a price related to the then market price. Trafalgar has the option, at any time after 15 July 2007, to convert the then outstanding part of the loan into new ordinary shares at a conversion price of 2p per share. As part of the arrangement fee for the loan, PMG will issue Trafalgar warrants to subscribe 250,000 new ordinary shares at 1.35p per share and 500,000 new ordinary shares at 1.8p per share.
The intention is to use the proceeds to repay the remaining loan owed to PMG's ex partners in Parallel Media Asia (2003) Ltd, the associated company which PMG disposed of in September 2006. The amount currently outstanding on this loan is ‚£300,000 and under the terms of the loan it can be repaid in either cash or in shares. If it were to be paid in shares then the loan would be repayable at a 60% premium.
For more information:Richard GrahamParallel Media GroupTel: +44 (0)20 72252000Nominated AdviserRoss AndrewsDirector
City Financial Associates Limited
Tel: +44 (0)20 70907800
PARALLEL MEDIA GROUP PLC
Follow the stocks
