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£1,665,000 Raised Through Placing, Subscription and New Convertible Loan Note – Favourable loan restructure terms and new orders
Fitbug Holdings Plc, the AIM quoted provider of online personal health and wellbeing services, has raised a total of £1,665,000 through a combination of the issue of new ordinary shares of 1 pence each in the Company by way of a Placing by Hybridan, Subscription by NW1 Investments Limited and the issue of a new Convertible Loan Note to NW1 Investments.
A restructuring of all existing loans has been agreed on favourable terms which strengthens the Group’s balance sheet, extends the term of the existing loans and reduces their interest rate.
Overview
· Funds raised will support product enhancement and marketing and increase sales of the Company’s integrated wearable health technology offering, including Kiqplan and Fitbug Orb;
· £665,000 (before expenses) raised by way of a placing of 26,600,000 new Ordinary Shares in the Company at 2.5 pence per share;
· £350,000 raised by way of subscription from NW1 Investments, which is subscribing for 14,000,000 new Ordinary Shares in the Company at 2.5 pence per share;
· A new £650,000 convertible loan in favour of NW1 Investments repayable by 31 July 2017 at a conversion rate of 3.25p per share;
· Agreed loan restructuring which extends the term on main loans until 31 July 2017, reduces the future interest rate by 40%, and with interest forgiveness provides an interest saving of c. £300k in the current year; and
· New orders from Towers Watson, Sainsbury’s, Sam’s Club, inflight retail specialist Scorpio and the NHS.
Fitbug Chairman Fergus Kee said, “Fitbug and in particular Kiqplan, is uniquely positioned within the wearables market, including Smartwatches, which is forecast to grow to 148 million units shipped per annum by 2018. These new funds and attractive loan restructure terms significantly strengthen the Company’s financial position and prospects. We welcome new investors and thank longstanding shareholders, Kifin Limited and NW1 Investments Limited for their continued support.”
