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News Centre Issue of convertible loan note and receipt of unsecured loans

 

For Immediate Release 19 December 2012
 
 
 
MoneySwap Plc
("MoneySwap", the “Group” or the "Company")
 
Issue of US$350,000 of convertible loan note
and
Receipt of US$1,937,000 of unsecured loans
 
Issue of convertible loan note
 
MoneySwap Plc (AIM: SWAP), the Asia focused prepaid card and online payment services provider, is pleased to announce that its wholly owned subsidiary, Money Swap Exchange Limited (“MSEL”), has issued convertible loan note totalling US$350,000 (the “Loan Note”).
 
The funds received from the Loan Note will be used to develop the Group’s new lines of business in co-operation with China UnionPay, further details of which have been announced previously, as well as for general working capital purposes. Moving forward, the Directors anticipate that the Group’s relationship with China UnionPay will be increasingly more important and will become the Group’s major revenue stream.
 
The Loan Note carries a 10% annual coupon and has a maturity date of 6 December 2014 (the “Maturity Date”), at which point the note holder may request repayment of the outstanding principal, plus any accrued interest. Should an individual note holder not request repayment at the Maturity Date by giving not less than two months prior written notice, their principal repayment date shall automatically extend for a further 12 months. MSEL has the option to repay all or part of the Loan Note, plus any accrued interest, at its discretion, at any time from six months after the issue of the Loan Note until the Maturity Date by giving not less than one month prior written notice. 
 
Any principal amounts outstanding under the Loan Note at the Maturity Date may be converted, at the discretion of the note holder, either in whole or in part, into new ordinary shares of MoneySwap (the “Conversion”) by giving not less than two months prior written notice. The price of the Conversion shall be calculated as a 10% discount to the average closing price of an ordinary share in MoneySwap on AIM for the 10 business days prior to the Maturity Date.
 
Chee Boon Lee, CFO, said: “We are delighted to be able to announce this loan note. The funding that it provided places us in a better position to be able to invest in the necessary IT and payment system development as well as increase the marketing effort that is required to expand our relationship with China UnionPay.”
 
Receipt of US$1,937,000 unsecured loans
 
In addition, MoneySwap announces that between 23 May 2012 and 13 December 2012 the Group has received a number of unsecured loans from two parties, totalling US$1,937,000 (the “Unsecured Loans”). One of the parties is Power Capital Forex Management Ltd (“PCFM”), which has lent a total of US$585,000.   The key terms of the Unsecured Loans are as follows:
 
1)      they have no fixed repayment terms;
2)      interest is payable at 5% per annum;
3)      they are repayable at the Group’s discretion;
4)      they are unsecured; and
5)      they are not convertible into new ordinary shares in MoneySwap.
 
The proceeds of the Unsecured Loans have been used by the Group for general working capital purposes, whilst the Company awaits receipt of trade receivables totalling US$1.75 million.The Directors are in discussions with a number of parties who may subscribe for additional Loan Note or provide other funding to the Company. The Directors are confident that the Loan Note and the Unsecured Loans provide the Company with sufficient capital for its short term requirements. After the China UnionPay products are put into full operations, the Board anticipates that the Group will be funded internally from the revenues generated and repayment of the Convertible Loan Note and Unsecured Loans will then be considered.
 
The Company expects to announce its interim results for the six months to 30 September on 21 December 2012. Due to the Company not receiving a outstanding trade receivable, as highlighted above, it has included a provision of US$1.7 million in its half yearly report.
 
PCFM is deemed to be a related party under the AIM Rules for the purposes of the receipt of the Unsecured Loans, as its majority owner, Heng-Jui Lin, is also a substantial shareholder in MoneySwap. The Directors of MoneySwap, having consulted with the Company’s nominated adviser, Allenby Capital Limited, consider the terms of the Unsecured Loans to be fair and reasonable insofar as shareholders of the Company are concerned.
 
- Ends –
 
For further information, please contact:

MoneySwap Plc
Allenby Capital Limited
GTH Communications
 
Nominated Adviser
Financial PR
Richard Proksa
Chief Executive Officer
Nick Naylor
Alex Price 
James Reeve
Toby Hall 
Suzanne Johnson Walsh
+852 3919 9888  
+44 20 3328 5656
+44 207 822 7493/7492

 
About MoneySwap (www.moneyswap.com)
 
MoneySwap Plc has its operational headquarters in Hong Kong. Primarily focused on the Asia market, the Group offers prepaid card services and also operates an online peer to peer foreign exchange and payment platform. The Group offers prepaid card services working with partners such as Corner Bank, Switzerland and Visa. MoneySwap is also a merchant acquirer for China UnionPay providing payment gateways for both online and point of sale merchants. In addition, UnionPay has licensed MoneySwap for its MoneyExpress service which enables people abroad to send funds directly to UnionPay cardholders in China. Its shares are traded on the London Stock Exchange's AIM market (AIM: SWAP). More information can be found at www.moneyswap.com.