Business
Approved for Venture Lending
Approved for Venture Lending.
About this update from Sigmaroc Plc
[{"type":"text","content":"\n RNS Number : 5629B Messaging International Plc 18 August 2008 \n \nMessaging International Plc / Market: AIM / Epic: MES / Sector: Technology\n18 August 2008 \nMessaging International Plc ('the Company')\nApproved for US$750,000 Venture Lending Loan \n\nMessaging International Plc, the AIM traded provider of innovative messaging services, has agreed a US$750,000 venture lending loan to its wholly owned subsidiary TeleMessage Ltd from Mizrahi Tefahot Bank Ltd, one of Israel's largest banks. This loan will be used for general working capital and the development of new innovative products and services by the Company's wholly owned subsidiary, TeleMessage Ltd.\n\nUnder the terms of the agreement, the Company can access this debt facility and withdraw the full amount in tranches until 30 June 2009, with repayments in 24 instalments from the date of each tranche. The interest rate on the loan is the London Interbank Offered Rate plus 4.5%. Mizrahi Tefahot Bank Ltd has also approved an additional $50,000 credit facility should the Company require further funding to support its growth strategy.\n\nIn addition, as part of the agreement, the Company will grant to Mizrahi Tefahot Bank Ltd warrants to the value of £100,000, exercisable at any time from grant to 13 Aug 2014. The first £50,000 value of warrants are exercisable at a price of 0.65p per share and the second £50,000 value of warrants are exercisable at the average closing price of an ordinary share in the capital of the Company during the first 90 days of trading commencing on 14 Aug 2008 (with such exercise price being subject to a minimum of 0.65p and maximum of 1p per share). A payment mechanism is included within the warrants whereby, in certain circumstances, a cash alternative payment of up to US$175,000 can be made by the Company in exchange for these warrants. Under the terms of the warrants, in certain circumstances the exercise price of the warrants is subject to adjustment. \n\nGuy Levit, CEO of Messaging International Plc, said, 'TeleMessage is committed to developing innovative, cutting-edge products and services for our customers worldwide, and this venture lending will further assist us in these efforts while also affording the company added flexibility in the timing of sales and marketing acti...