11th May 2018 11:04
LONDON (Alliance News) - Falcon Media House Ltd said Friday it has received a further GBP200,000 through the issue of convertible loan notes, as it continues pursue further funding to plug a GBP750,000 gap left by an investor's failure to pay.
Falcon raised GBP200,000 through the issue of convertible loan notes to a new investor under the outstanding notes from an GBP3.4 million offer opened in October.
The conversion price is 2.5 pence per share. Shares in Falcon were 30% higher at 3.26p on Friday.
Falcon is continuing to pursue further funding opportunities with relation to the remainder of the outstanding convertible loan note amount. It is also considering other funding options.
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".
In late April, however, Falcon confirmed the outstanding GBP750,000 was still to be received. Falcon was continuing to work at the time with its legal advisers to "consider all options and reserve its rights to ensure all monies promised to it are duly received".
Also in late April, Falcon confirmed it had raised a further GBP325,000 through the issue of convertible loan notes under the offer. In total, Faclon has now issued GBP3.1 million worth of loan notes under its GBP3.4 million offer.