1st Jul 2016 16:18
LONDON (Alliance News) - Payment services provider MoneySwap PLC on Friday said it is continuing to progress a fundraising to raise USD5.4 million, after which it plans to convert interest on its loan notes into shares and replace three of its directors, including its chief executive.
MoneySwap said it has reached a preliminary agreement with Hunan Commodities Trading Centre, under which Hunan would subscribe for 2.72 billion shares in MoneySwap at USD0.0019817 per share, to raise USD5.4 million.
Shares in MoneySwap closed up 7.90 pence on Friday.
Hunan is a privately owned company based in Hunan province in the People's Republic of China and, if the deal is to go ahead, both parties will agree the terms of a relationship agreement relating to the nature of Hunan's equity interest in MoneySwap and a 12 month lock-in agreement in respect of all new shares subscribed for by Hunan.
Should the deal proceed, Hunan would hold a 61% stake in MoneySwap, the company said.
In additional to this, MoneySwap is currently undertaking equity for debt discussions with two of its creditors.
Leading Empire Group Ltd has agreed, conditional on the subscription completing, to convert USD171,000 of the USD240,000 of principal and accrued interest on its convertible loan notes into new shares at the subscription price.
Meanwhile Advance Development Corp has agreed, also conditional upon the subscription completing, to covert USD529,000 of the USD744,000 principal and accrued interest on its convertible loan notes into new shares at the subscription price. The remaining balance of both would continue to exist as convertible loan notes, MoneySwap said.
Should the subscription complete, three of MoneySwap's existing directors, Chief Executive Sunny Yu, Non-Executive Director Emma Xu and Non-Executive Director Javier Amo, intend to resign from the board, and three new directors will be appointed including a chief executive.
MoneySwap has received a further USD18,000 under an extension to the loan facility from Changsha Zhangdian Investment Company Ltd, the company added.
By Hannah Boland; [email protected]; @Hannaheboland
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