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Legal action against Fitbit on course for court decision in 2015
Fitbug Holdings Plc, the AIM listed provider of online personal health and well-being services, has agreed that the repayment date of all loans to the Company from NW1 Investments Limited and Kifin Limited, a Kirsh Group subsidiary, be extended to 31 July 2015. Other terms remain unchanged including the interest rate which remains at 5%.
The Company is also pleased to announce that it has agreed a further £1 million loan (‘the Loan’) from NW1 Investments Limited (‘Loan Holder’). The Loan is repayable by 31 July 2015 and will accrue interest at 5% per annum, payable on a quarterly basis. NW1 Investments Limited is a company in which the family of David Turner and Allan Fisher, both directors of Fitbug, have a material interest.
The independent directors of the Company, being Fergus Kee, Malcolm Fried, Paul Landau, Ann Jones, Geoffrey Simmonds and Andrew Brummer, consider, having consulted with Cantor Fitzgerald Europe, that the terms of the Loan are fair and reasonable in so far as shareholders are concerned.
The Company’s legal action against Fitbit alleging trademark infringement, as well as unfair competition and unfair business practices, continues to progress and is scheduled to go to trial in the U.S. District Court for the Northern California in early 2015.
Fergus Kee, Chairman of Fitbug said, “This term extension on existing loans and the additional loan capital, both on attractive terms, significantly strengthens the Company’s financial position at a time of strongly growing demand for wearable technology. We have an exciting pipeline of business ahead and we look forward to developing this and continuing our investment into both our sales strategy and product.”
