Convertible Loan

2 Jul 2007 16:00

Cellcast plc02 July 2007 Press Release 2 July 2007 Cellcast plc ("Cellcast" or "the Company") Secured Convertible Loan and Issue of Equity Cellcast plc (AIM: CLTV), the global interactive digital broadcaster, announcesthat it has entered into a secured convertible loan agreement of up to £2million with the Headstart Funds ("Headstart"). These additional funds will be used to strengthen the ongoing working capitalposition of the Company and to support further investment in the Group'stechnology platform and more specifically for the continued funding ofCellcast's User Generated Content business Sumo.tv. It is the intention of theDirectors to release shareholder value by spinning off the Sumo business at alater stage. The facility, which is secured by charges over available assets of the Company,is available for a term of two years, with interest payable at a rate of 9 percent per annum, with the first tranche of £500,000 to be drawn down on 4 July2007. Headstart has the option to convert any part of the loan which is outstandinginto equity at any time for a period of 360 days from the date that tranche ofthe loan was made available at 95 per cent of the lowest bid price of theCompany's shares during the 15 trading days preceding the conversion date.Unless previously repaid or converted, each tranche is repayable not later than360 days after draw down. Headstart has been issued five year warrants in respect of 2,000,000 OrdinaryShares of the Company at an exercise price of 8.8 pence per share. The Company has also issued and allotted 625,000 new Ordinary Shares of 3 penceeach to Headstart at a price of 8 pence per share as part of the arrangement.Application will be made for the 625,000 new Ordinary shares, which rank paripassu with the existing shares, to be admitted to trading on AIM. Following this notification, the total number of shares in issue stands at62,592,584. - Ends - For further information:Cellcast plcAndrew Wilson, CEO Tel: +44 (0) 20 7190 0300andrew@cellcast.tv www.cellcast.tv HB CorporateEdward Hutton / Rachel Kane Tel: +44 (0) 20 7510 8600e.hutton@hbcorporate.co.uk www.hbcorporate.co.uk Media enquiries:AbchurchGareth Mead / Joanne Shears Tel: +44 (0) 20 7398 7700gareth.mead@abchurch-group.com www.abchurch-group.com Notes to Editors: Cellcast plc Cellcast plc (AIM:CLTV) is a leading international provider of participationtelevision applications and interactive mobile content in the fast-growingmulti-platform digital entertainment sector. Headquartered in London, withassociated operations in Paris, Beirut, Mumbai, Miami, Hong Kong and Sao Paolo,Cellcast's applications and programming are distributed on the Sky Digital andFreeview platforms in the UK and broadcast partners include Canal+ in France;Future TV, Dubai Television and Rotana TV in the Middle East; Zee TV, STAR TVand Sahara TV in India; TVS-3 in China; TV3 in Malaysia; and Rede TV, TV Gazettaand TV Banderantes in Brazil. Cellcast plc joined the AIM market of the London Stock Exchange in 2005. This information is provided by RNS The company news service from the London Stock Exchange