29th Jun 2006 12:46
3DM Worldwide PLC29 June 2006 3DM Worldwide plc 3DM Worldwide plc additional funding to support commercialisation 3DM Worldwide plc ("3DM" or "the Group") is a developer and holder of theintellectual property rights to a polymer-based powder impression moulding("PIM") process To enable the company to progress the high level of commercial interest in thePowder Impression Moulding (PIM) process and to fund the purchase of moulds forthe Alpha machine in Bedwas House, the existing convertible debenture withCornell Capital Partners, L.P, announced on 5 January 2006, has been extended by£1.5 million. The funds will provide working capital and will be used to strengthen thein-house skill base required to progress the commercial discussions currentlyunderway. In particular, skill gaps in computer aided design and polymerchemistry will be filled. The funds will also allow 3DM to match funding from clients for the purchase ofmoulds for contract manufacture of products on the Alpha line. The terms are in line with the previously announced facility. In consideration for the additional advance Cornell will receive £80,000 aspayment of legal and arrangement fees as well as 2 million additional warrants.These warrants along with the previous 6 million warrants will have an exerciseprice of the lower of 12p per share or 90% of the share price on the day ofexercise. Cornell is restricted in conversion of the debenture to a maximum of £300,000 ofper week (previously £150,000). The conversion to shares in the company will bebased on the lower of 90% of volume weighted average price during either the 10days prior to the closing date of the deal or the 10 days prior to theconversion date. The term of the additional advance is 24 months. 3DM retains the right to repay all or part of the combined debenture in cash. As part of this agreement the existing Standby Equity Distribution Agreement(SEDA) for up to £5 million announced on 15 September 2003, which is due toexpire in September 2006, has been extended for a further 24 months, for aconsideration of £150,000 in cash or shares payable on completion at thediscretion of 3DM. No drawdown has been made against this facility. With the additional resources available to the company under these arrangements,the board remains confident that the commercial discussions currently underwayand referred to in the preliminary results statement on the 22 May 2006 can bebrought to a successful conclusion. 29 June 2006 ENQUIRIES: College Hill 020 7457 2020Gareth DavidAnthony Parker This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ENRT.L