Business
Financial Update
Financial Update.
About this update from T42 Iot Tracking Solutions Plc
[{"type":"text","content":"\n \n \n \n \n \n 15 December 2022\n \n \n \n \n \n \n \n \n t42 IoT Tracking Solutions plc\n \n \n \n (\"t42\" or the \"Company\")\n \n \n \n \n \n \n \n T42 Financial Update\n \n \n t42\n IoT Tracking Solutions plc (AIM: TRAC) (\"t42\" or the \"Company\"), the provider of global shipping container tracking solutions, announces that it has raised c. US$611k (gross) through a combination of debt and equity subscriptions, and arranged settlement of a further c. US$328k of supplier debt through a convertible loan, as detailed further below. The new funding will be used to strengthen the Company's balance sheet as well as to support its future growth.\n \n \n \n Debt Facility\n \n \n \n The Company has, through its wholly-owned subsidiary T42 Limited, entered into a loan agreement (\"Agreement\") with CSS A\n lpha\n Global Pte Ltd (\"CSS\") for the provision of a 12-month secured US$500,000 debt facility (\"Facility\"), to support manufacturing commitments and working capital needs. The Agreement provides, inter alia, for interest at 2 per cent per month, with 9 monthly repayments starting 3 months after drawdown. Security is by way of a second charge on assets, a personal, guarantee from Avi Hartman, CEO, limited to 20 per cent of the loan and a deposit with CSS of 3,000,000 new t42 shares (\"Deposit Shares\"). In addition, warrants for a total of 2,976,185 shares in t42 have been issued to CSS, exercisable at 7p per share over 5 years. The Facility includes representations and warranties by the Company that are customary for an agreement of this nature. The Agreement is subject to Mr Hartman not resigning as CEO of T42 Limited during the term of the Facility.\n There is no penalty for prepaying the Agreement at any time.\n \n \n \n \n \n \n Convertible Loan\n \n \n \n The Company has issued a £265,000 convertible loan note (\"CLN\") to a supplier, to be applied in lieu of settlement of a supplier debt, assisting with the Company's cashflow management. The CLN bears interest at 3% per annum, payable quarterly, and is repayable by 31 December 2024. The CLN is convertible at 9p per share at the discretion of the holder. In addition, he Company has the right to enforce conversion of £100,000 of the CLN in the event t42's share price exceeds 12p and the balance if the share price exceeds 15p.\n \n \n  ...