Webis Holdings PLC Term Loan for USA Bonds ("Loan") agreed (7370X)
24 February 2017 - 6:00PM
UK Regulatory
TIDMWEB
RNS Number : 7370X
Webis Holdings PLC
24 February 2017
For Immediate Release
24 February 2017
WEBIS HOLDINGS PLC
("Webis")
Webis agrees Term Loan for USA Bonds ("Loan")
The Board of Webis, the Group specializing in pool wagering and
the operators of Cal Expo, the Californian harness track, as part
of the strategy to consolidate and increase the number of operating
licenses, has agreed a Term Loan on behalf of Watch & Wager Inc
("W&W") for the sum of USD $500,000 from Galloway Limited
("Loan").
At present, W&W is licenced in the following US states:
California, North Dakota, Maryland, Minnesota, Kentucky and
Washington, as well as additional licences to place wagers,
principally in Hong Kong, United Kingdom, Australia, France, and
Canada. The majority of these licences are supported by cash-backed
Bonding Agreements and, together with the proceeds of the new loan,
Webis holds approximately US$ 2.5 million cash deposits for this
purpose.
The Board of Webis considers the renewal and expansion of key US
licenses to be central to the development of the W&W
business-to-consumer strategy, namely the acceptance of wagers via
its principal website watchandwager.com and mobile product in
licensed jurisdictions. The Loan will allow W&W to renew
existing and pursue new licenses as required.
The Loan carries a coupon 7.75% for a term of five years and is
secured against all the unencumbered assets of Webis. The Board of
Webis remains confident that W&W possesses sufficient working
capital to meet current and planned operational requirements.
Denham Eke, the non-executive Chairman of Webis, is a director
of Galloway Limited and both he and Nigel Caine, a non-Executive
Director, are directors of Burnbrae Group Limited of which Galloway
Limited is a wholly owned subsidiary and which is an indirect 63.1
per cent. shareholder in Webis. Accordingly, as a Related Party
Transaction under AIM Rules, the independent Directors (being Ed
Comins and Sir James Mellon), having consulted with the Company's
Nominated Adviser, consider the terms of the Loan are fair and
reasonable in so far as Webis's shareholders are concerned.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
For further information please select an appropriate contact
from our Media Contacts Page.
For further information:
Webis Holdings plc Tel: 01624 639396
Denham Eke
Beaumont Cornish Limited Tel: 020 7628 3396
Roland Cornish/James Biddle
End
This information is provided by RNS
The company news service from the London Stock Exchange
END
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