25 Feb 2013 07:00
THE WEATHER LOTTERY PLC
('TWL or the 'Company')
Provision of Loan
25 February 2013
In the Company's announcement of 11 January 2013, the Company advised that the Gambling Commission had undertaken a review over the lottery operator licence held by its subsidiary company, Prize Provision Services Limited ("PPS"). Further to the review the Board will increase the level of capital held by PPS. The Company expects to meet all Gambling Commission requirements which will ensure the lottery is fully compliant with the Commission Code of Conduct.
J S Williams, a Substantial Shareholder (as defined by the AIM Rules for Companies) and a director of PPS, has made a loan to the Company to facilitate this increase in the capital held by PPS (the "Loan"). The key terms of the Loan are as follows:
·; Amount - £90,000.
·; Term - 3 months.
·; Interest Rate - 2% per month, not compounded, calculated on a daily basis.
·; Security - A charge over the Company's shares in PPS.
If the Loan is not repaid at the end of the term, Mr Williams has the option to request that the Loan is converted into ordinary 0.1p shares in the Company ("Ordinary Shares") at the average closing mid-market price of the Ordinary Shares on AIM for the three business days prior to the expiry of the term, subject to a minimum conversion price of 0.1p per Ordinary Share. The Loan is subject to immediate repayment in the event of a change of control (within the meaning of section 1124 of the Corporation Tax Act 2010). The Directors of the Company consider, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as shareholders are concerned.
The Board is in discussions with its advisers over the provision of longer term financing to replace the Loan, whilst also considering possible transactions which are hoped will deliver significant shareholder value if completed. The Board is optimistic that its present discussions will assist in a fundraising and give a new impetus to TWL following the settlement of the historic problems in the Lottery created by the way it was operated under previous management over the past years.
For further information contact
The Weather Lottery PLC
John Botros (Company Secretary) 07714 209 346
Allenby Capital (Nomad)
Nick Harriss/Nick Athanas 020 3328 5656
SVS Securities (Broker)
Ian Callaway 020 7638 5600