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News Centre Loan Conversion

 

For immediate release: 5 March 2012
 
MoneySwap Plc
(“MoneySwap”, the “Group” or the “Company”)
 
Loan Conversion
 
The board of MoneySwap Plc (AIM:SWAP), the prepaid card and currency exchange business, is pleased to announce that it has served notice on Power Capital Exchange Corp. (“Power Capital”) to convert the outstanding loan facility of US$1,349,000 to 21,174,254 ordinary shares of 0.1 penny each (the “Conversion Shares”) at the price of 4 pence per ordinary share. The conversion price represents a 28% premium to the closing mid-market price of 3.125 pence on 2 March 2012, being the date that the notice of conversion was signed.
 
The loan facility was entered into with Power Capital on 9 May 2011 for a period of 2 years from 31 August 2011 (being the date of MoneySwap’s admission to AIM). The loan was interest free and able to be converted into ordinary shares at MoneySwap’s sole option at any time during the term of the loan, it being originally agreed that the conversion price would be expressed as the average mid-market price of the ordinary shares in the 10 business days prior to the notice of conversion being given to Power Capital.
 
The Company has made the strategic decision to exercise its conversion rights now in light of its recent efforts to explore new business opportunities. In doing so, the Company believes that it will be advantageous to have no debt on its balance sheet. The Company believes that this decision will help it develop business initiatives and create confidence with its prospective business partners.
 
Application has been made for the Conversion Shares, which will rank pari passu with the Company's existing ordinary shares in issue, to be admitted to trading on AIM (“Admission”). It is expected that admission will be effective on or about 8 March 2012.
 
When issued the Conversion Shares will represent 5.03 per cent. of the enlarged share capital of MoneySwap. The total issued share capital of MoneySwap following Admission will be 420,870,655 ordinary shares of 0.1 penny each in the capital of MoneySwap. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of MoneySwap under the Disclosure and Transparency Rules.
 
Chee Boon Lee, CFO, commented:
“We are pleased that Power Capital has agreed to convert the loan at a large premium to our current market price, despite the contractual terms of the loan entered into last year. Their decision demonstrates the confidence Power Capital has in both the near term and long term future of the Company.
 
“Being able to present a clean balance sheet to our prospective business partners at a time of key growth for MoneySwap is considered extremely important by the Board.”
 
 
About MoneySwap (www.moneyswap.com)
MoneySwap Plc has its operational headquarters in Hong Kong. Primarily focused on the Asia market, the Group offers pre-paid card services and also operates an online peer to peer foreign exchange and payment platform. The Group’s pre-paid card services are primarily aimed at Asian travellers and enable them access to local currencies from ATMs, point of sales and on line purchases in Europe and the United States The Group’s online money services platform facilitates peer to peer currency exchange and payments either between e-wallets or international money transfers through the global banking system. The Group has banking relationships with Barclays Bank plc in Europe, DBS Bank in Singapore as well as Standard Chartered plc, HSBC in Hong Kong together with various local domestic banks in other countries. Its shares are traded on the London Stock Exchange’s AIM market (AIM:SWAP.L).
 
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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
+44 203 103 3900