29th Jul 2008 07:00
Embargoed until: 0700hrs, 29 July 2008
2ergo Group plc
("2ergo" or "the Group")
Loan Agreement
2ergo, the AIM listed provider of convergent mobile communication solutions, announced today that the Group has provided a loan facility to the Broca plc group ("Broca") to fund the acquisition of Sure on Sight Limited, the original owner of certain key intellectual property rights used in the Broca business. The balance of the funds will be used by Broca for additional working capital. Under the loan agreement, the Group, which owns 7,487,542 shares in Broca representing 19.9% of Broca's issued share capital, will provide Broca with £1 million of funding in aggregate. The loan will be drawn down in instalments between now and December 2008.
Commenting on the agreement, Neale Graham, Joint Chief Executive of 2ergo, said: "We see a bright future for Broca's offering as m-commerce continues to grow and the need for secure communications increases. As a significant investor in Broca, we are pleased to be able to offer this funding facility which will provide Broca with the benefit of owning the IP on which its products are based. It will also provide Broca with additional working capital that will assist it in achieving the next stage of its development."
He added: "2ergo is highly cash generative and continues to have a strong cash position following this loan, which will allow us to comfortably achieve our ambitions for future expansion."
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For further information contact:
|
Jill Collighan, Finance Director |
Lulu Bridges/Andrew Dunn |
|
2ergo Group PLC |
Tavistock Communications |
|
Tel: 01706 221 777 |
Tel: 020 7920 3150 |
|
Stuart Skinner |
David Poutney |
|
Numis Securities Limited, as Nominated Advisor |
Numis Securities Limited, as Corporate Broker |
|
Tel: 020 7260 1000 |
Tel: 020 7260 1000 |
About 2ergo
2ergo is a leading provider of interactive and multi-channel communications solutions using mobile technologies, fixed-line telecommunications and the internet. Powered by the Group's Multiserve Platform, 2ergo delivers solutions and services to many sectors of industry, with clients that range from SMEs to multi-national enterprises, to public sector organisations. The Group's expertise enables organisations to advance their use of technology, to switch on new revenues, optimise business processes and open up new marketing channels.
Headquartered in Lancashire, United Kingdom, the Group is listed on AIM, a market of the London stock exchange (AIM: RGO).
About Broca plc
Broca plc (AIM: BROC) completed its demerger from 2ergo and successfully listed on AIM on 6th March 2007. The Broca Business is the development and exploitation of technology with the intention of enabling M-commerce to be carried out securely via digital services, principally by extending conventional SMS messaging from existing mobile telecommunications equipment. The technology is based upon Broca's innovative, patented Protocol. In addition to the security benefit mentioned above, the Protocol is intended to deliver confirmation of message receipt by the recipient, something which the Broca directors believe is not currently available to mobile device users in connection with M-payments. Whilst the initial technology has been optimised for use with SMS, the Broca directors believe the Protocol should ultimately be applicable to other forms of digital messaging and also E-commerce.
For further information please visit: www.brocaplc.com.
Related Shares:
MXCP.L