24th Apr 2018 14:30
LONDON (Alliance News) - Falcon Media House Ltd said Tuesday it has received GBP325,000 through the issue of convertible loan notes, as it continues to chase GBP750,000 in funding it has still not received.
In October 2017, Falcon - a digital media firm - announced it had raised GBP3.4 million through a convertible loan note. The loan was "supported by existing shareholders and group management".
The loan was raised in order to cover working capital during revenue delays created due to "contracts taking longer to sign than originally anticipated". The loan was sought to address the funding gap the delays had created.
At the time of the loan note issue, Falcon allowed one of its main shareholders to delay payment whilst the shareholder "restructured its own position".
On Tuesday, Falcon confirmed the outstanding GBP750,000 is still to be received. Falcon was continuing to work with its legal advisers to "consider all options and reserve its rights to ensure all monies promised to it are duly received".
In the meantime, Falcon said on Tuesday it had raised GBP325,000 through the issue of convertible loan notes to a new investor under the outstanding notes from the October offer. Of this, GBP270,000 has already been received in cash.
The conversion price is 2.5 pence per share. Shares in Falcon were quoated at 2.25p on Tuesday.
Falcon is continuing to pursue further funding opportunities with relation to the remainder of the outstanding convertible loan note amount.
Falcon was "extremely pleased that existing shareholders, as well as the directors and the executive management team have participated in this fundraise, indicating a strong belief in the prospects of Falcon".
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Falcon