By Susanna Moon
Chicago, July 2 - Cellcast plc said it inked a £2 million loan agreement with Headstart.
The two-year facility is secured by charges over available assets and bear interest of 9%. The first tranche of £500,000 will be drawn down July 4.
Headstart can convert any part of the loan outstanding into equity for 360 days at 95% of the lowest bid price of the company's shares during the 15 trading days before conversion date. Unless previously repaid or converted, each tranche is repayable not later than 360 days after draw down.
The company has issued Headstart five-year warrants for 2 million shares exercisable at 8.8p per share.
The company also issued and allotted 625,000 shares at 8p each as part of the arrangement.
Loan proceeds will be used for working capital and for investing in technology, the company said in a press release.
Cellcast is a London-based provider of participation television applications and interactive mobile content in multi-platform digital entertainment.
| Issuer: | Cellcast plc
|
| Issue: | Convertible loan agreement
|
| Amount: | £2 million
|
| Maturity: | Two years
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | For 95% of lowest bid price during 15 trading days before conversion
|
| Warrants: | For 2 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 8.8p
|
| Stock symbol: | AIM: CLTV
|
| Stock price: | 9.38p at close June 29
|
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