Last checked at 24 Feb 2017 07:00
For Immediate Release
24 February 2017
WEBIS HOLDINGS PLC
("Webis")
Webis agrees Term Loan for USA Bonds ("Loan")
The Board of Webis, the Group specializing in pool wagering and the operators of Cal Expo, the Californian harness track, as part of the strategy to consolidate and increase the number of operating licenses, has agreed a Term Loan on behalf of Watch & Wager Inc ("W&W") for the sum of USD $500,000 from Galloway Limited ("Loan").
At present, W&W is licenced in the following US states: California, North Dakota, Maryland, Minnesota, Kentucky and Washington, as well as additional licences to place wagers, principally in Hong Kong, United Kingdom, Australia, France, and Canada. The majority of these licences are supported by cash-backed Bonding Agreements and, together with the proceeds of the new loan, Webis holds approximately US$ 2.5 million cash deposits for this purpose.
The Board of Webis considers the renewal and expansion of key US licenses to be central to the development of the W&W business-to-consumer strategy, namely the acceptance of wagers via its principal website watchandwager.com and mobile product in licensed jurisdictions. The Loan will allow W&W to renew existing and pursue new licenses as required.
The Loan carries a coupon 7.75% for a term of five years and is secured against all the unencumbered assets of Webis. The Board of Webis remains confident that W&W possesses sufficient working capital to meet current and planned operational requirements.
Denham Eke, the non-executive Chairman of Webis, is a director of Galloway Limited and both he and Nigel Caine, a non-Executive Director, are directors of Burnbrae Group Limited of which Galloway Limited is a wholly owned subsidiary and which is an indirect 63.1 per cent. shareholder in Webis. Accordingly, as a Related Party Transaction under AIM Rules, the independent Directors (being Ed Comins and Sir James Mellon), having consulted with the Company's Nominated Adviser, consider the terms of the Loan are fair and reasonable in so far as Webis's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
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For further information:
Webis Holdings plc Tel: 01624 639396
Denham Eke
Beaumont Cornish Limited Tel: 020 7628 3396
Roland Cornish/James Biddle
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