Business
$1.3 million raise through Convertible Loan
$1.3 million raise through Convertible Loan.
About this update from T42 Iot Tracking Solutions Plc
[{"type":"text","content":"\n\n26 July 2023\n \nt42 IoT Tracking Solutions plc\n \nT42 raises $1.3M through a convertible loan from a strategic customer\nt42 IoT Tracking Solutions plc (AIM: TRAC) (\"t42\" or the \"Company\") is pleased to announce that it has raised $1.3m (before expenses) to support both existing orders and the Company's new lease-based order strategy and to repay certain existing loans. The funding is in the form of a secured convertible loan (\"Loan\") provided to t42 Limited by Ewave Mobile Ltd.) (\"Lender\"), an international group providing solutions across a range of sectors, including supply chain management. Companies within Lender's group have been long-time key customers of t42 in the supply chain market.\n \nThe Loan, which carries interest at 10% per annum, payable quarterly on the principal drawn, will be drawn down as to $600,000 immediately, $300,000 in three equal tranches during August 2023, and the balance of $300,000 by 30 September 2023.\n \nThe Company will apply approximately $0.55 million of the Loan to repay in full the outstanding loan from CSS Alpha Global Pte Ltd (\"CSS\"), together with interest accrued, which was announced on 15 December 2022 and carried a substantially higher interest rate compared to the new Loan.\n \nThe remaining funds from the Loan are anticipated to assist the Company in advancing several pending orders by supporting the upfront payment to suppliers and the new financing leasing structure for other existing orders, and to support taking advantage of the expected growth in business opportunities during 2023.\n \nThe Loan, together with accrued interest at the time of conversion, may be converted, at the discretion of the Lender, at any time prior to the Loan repayment date of 20 January 2025, into such number of new t42 ordinary shares as corresponds to 29.5% of the Company's issued ordinary share capital immediately following such conversion. The Loan may be converted in part, on a pro rata basis to the above terms.\n \nBased on the Company's current issued share capital, being 54,026,822 ordinary shares, and prevailing exchange rates, the conversion rate corresponds to approximately 4.46p per new t42 ordinary share and full conversion would result in the issue of 22,606,968 shares.\n \nFor so long as (i) the Loan is outstanding, or (ii) the Lend...