Falcon Media House Shares Collapse 37% Amid Funding Uncertainty (ALLISS)

20th Mar 2018 13:29

LONDON (Alliance News) - Falcon Media House Ltd said Tuesday there was no certainty over GBP750,000 of the GBP3.4 million convertible loans raised to fund working capital needs may be received.

Shares in Falcon were trading 37% lower at 3.51 pence on Tuesday.

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 its main shareholders to delay payment whilst the shareholder "restructured its own position." The outstanding GBP750,000 is still to be received, however, and Falcon were working with the shareholder to clarify the position.

There is no certainty, however, that the committed funds will be received by Falcon. As a result, Falcon is looking for "alternative sources of funding" to support its financial position.

Falcon emphasised it has made "good progress" towards commercialisation of its Q-flow technology. It is expecting to sign a "number" of new contracts in the near term.

On Monday, Falcon reported two non-executives had retired from the firm. Richard Baker - non-executive since June 2016 - retired in order to "concentrate on full-time responsibilities elsewhere." Edgar Wallner - non-executive since October 2017 - retired for "personal reasons."

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