Cellcast News
Secured Convertible Loan and Issue of Equity
02 July 2007
Cellcast plc (AIM: CLTV), the global interactive digital broadcaster, announces that it has entered into a secured convertible loan agreement of up to £2 million with the Headstart Funds ("Headstart").
These additional funds will be used to strengthen the ongoing working capital position of the Company and to support further investment in the Group's technology platform and more specifically for the continued funding of Cellcast's User Generated Content business Sumo.tv. It is the intention of the Directors to release shareholder value by spinning off the Sumo business at a later 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 per cent per annum, with the first tranche of £500,000 to be drawn down on 4 July 2007.
Headstart has the option to convert any part of the loan which is outstanding into equity at any time for a period of 360 days from the date that tranche of the loan was made available at 95 per cent of the lowest bid price of the Company's shares during the 15 trading days preceding the conversion date. Unless previously repaid or converted, each tranche is repayable not later than 360 days after draw down.
For further information:
| Cellcast plc |
|
Emmanuelle Guicharnaud, Finance Director |
Tel: +44 (0) 20 7190 0300 |
| HB Corporate | |
| Edward Hutton / Rachel Kane | Tel: +44 (0) 20 7510 8600 |
| e.hutton@hbcorporate.co.uk | |
| Gareth Mead / Joanne Shears | Tel: +44 (0) 20 7398 7700 |
| gareth.mead@abchurch-group.com |
Notes to Editors:
Cellcast plc
Cellcast plc (AIM:CLTV) is a leading international provider of participation television applications and interactive mobile content in the fast-growing multi-platform digital entertainment sector. Headquartered in London, with associated operations in Paris, Beirut, Mumbai, Miami, Hong Kong and Sao Paolo, Cellcast’s applications and programming are distributed on the Sky Digital and Freeview 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 TV and Sahara TV in India; TVS-3 in China; TV3 in Malaysia; and Rede TV, TV Gazetta and TV Banderantes in Brazil.
Cellcast’s revenues streams are independent of both advertising and subscription fees. With a network of revenue sharing agreements with telecommunications carriers and aggregators across five continents, Cellcast receives a share of the call revenue every time a consumer uses a mobile or fixed-line phone to participate in its interactive entertainment, revenue which is retained or shared with its broadcast partners. Cellcast’s programme formats and proprietary Interactive Platform (CIP) also facilitate delivery of content to mobile phones, the internet and broadband-delivered IPTV. This enables viewers to continue participating in a programme away from the TV, generating 24/7 revenue opportunities.
Cellcast plc joined the AIM market of the London Stock Exchange on 21 September 2005.