9 May 2016 10:30
9 May 2016
MoneySwap plc
("MoneySwap" or the "Company")
Receipt of short-term loan, fundraising update and notice of AGM
Short term loan
MoneySwap (AIM: SWAP), the provider of payment solutions to online and point of sale merchants licensed for UnionPay in the UK and the provider for UnionPay MoneyExpress service enabling overseas persons to send funds directly to UnionPay cardholders in China, today announces further information on the funding of the Company.
On 6 May 2016, MoneySwap received USD80,000 by way of a loan from Changsha Zhangdian Investment Company Limited (the "Lender"). This advance is the first drawdown against a total loan facility from the Lender to MoneySwap of USD200,000 (the "Loan"). The balance of the Loan is expected to be drawn down by the Company before the end of May 2016.
The Lender is a privately held investment company based in Hunan Province of the People's Republic of China (the "PRC"). The Lender is also a substantial shareholder in Hunan Commodity Exchange Company Limited ("HNCX"). HNCX is licensed to operate a commodity exchange platform in the Hunan province of the PRC.
Fundraising update
As previously announced, the Company is seeking to increase its equity base substantially to provide funding for its short and medium term development needs. Pursuant to this, the Company is in advanced discussions with HNCX with the intention of HNCX investing approximately USD 4.5 million by way of subscription for new ordinary shares and/or warrants to subscribe new ordinary shares in the Company (the "Proposed Subscription").
Monies from the Loan advance are to be applied by the Company principally in meeting the various legal and regulatory costs associated with closing the Proposed Subscription and in meeting the Company's short-term working capital needs. The Loan is a senior unsecured loan, interest free and repayable in full out of the proceeds of the Proposed Subscription.
If the Proposed Subscription is completed on the terms currently contemplated by the Company, it is likely that HNCX (either in its sole capacity or alongside co-investor(s)) will acquire a controlling stake in the Company. It is also anticipated that there will be a number of changes to the Board of the Company, including HNCX making an appointment of a Director.
Notice of AGM
In order to complete the Proposed Subscription, the Directors propose to seek the approval of shareholders at a general meeting to resolutions, which would give the Directors authority to allot sufficient new ordinary shares and/or warrants to allow the Proposed Subscription to proceed. The Company is due to hold its annual general meeting ("AGM") and accordingly, these resolutions will be put to shareholders at that AGM. The Board will shortly sent to shareholders notice of its AGM, to be held at 9.00 am on Friday, 3 June 2016 at the offices of Allenby Capital Limited at 3 St Helen's Place, London EC3A 6AB.
Shareholders are advised that there is no certainty that the Proposed Subscription will complete as planned. However, the Board consider it prudent to seek the necessary authorities to allot new shares from shareholders at this time given the timescales involved and the financing requirements of the Company. The Directors consider that the Proposed Subscription would be in the best interests of all shareholders and all other stakeholders in the Company and intend to vote in favour of the proposed resolution at the AGM.
If MoneySwap fails to secure the funding it requires, there would remain a significant doubt over the Company's ability to continue as a going concern.
- Ends-
For further information, please contact:
MoneySwap Plc | Allenby Capital Limited | MoneySwap Plc |
Non-Executive Chairman | Nominated Adviser | Financial PR |
Craig Niven
| Nick Naylor James Reeve | Fiona Fenn Smith
|
+44 7767 497400 | +44 20 3328 5656 | +44 7712 101922 |
About MoneySwap (www.moneyswap.com)
MoneySwap provides payment solutions and gateways to merchants, which allow both online and point of sale transactions to be settled using UnionPay cards in the UK. In addition, UnionPay has licensed MoneySwap for its MoneyExpress service, which enables overseas persons to send funds directly to UnionPay cardholders in China. The Company also offers an online peer-to-peer platform for currency exchange and payments. The Company's shares are traded on the London Stock Exchange's AIM market (AIM: SWAP). More information can be found at www.moneyswap.com.