Clarity Commerce Solutions PLC
01 February 2008
Clarity Commerce Solutions plc
(AIM: CCS, company number 3914814)
1 February 2008
WORKING CAPITAL DRAW-DOWN
The Board of Directors (the 'Board') of Clarity Commerce Solutions plc
('Clarity' or the 'Company'), the AIM listed provider of software solutions and
services to the hospitality, leisure, entertainment and retail markets, confirms
that on 30 January 2008 it executed a loan agreement and yesterday drew down
£600,000 (the 'Loan') net of expenses and a 1% facility fee in order to provide
Clarity with much needed additional working capital in advance of other
fundraising initiatives that are underway.
The Loan has been made available from Southwind Limited (an investment company
wholly owned by a trust established by Mr ALR Morton) (the 'Lender') and is
repayable on the earlier of the Company raising equity funds or the expiry of a
period ending within one year (the 'Term'). In the event that acceptable
security for the Loan can be agreed with the Company's bankers and put in place,
interest will be charged at a rate of 10 per cent. per annum. Until that time
interest is payable at 30 per cent. per annum. The Company has the right to
repay the Loan in whole or in part at any time during the Term without
limitation, and funds from any fundraising will be partly used for this purpose.
Given the cash constraints which the Company is currently operating under, which
were highlighted in the Group's interim statements issued at the end of
December, the Board considers the terms of the loan to be acceptable and the
arrangement in the best interests of the Company's shareholders.
Commenting on the Loan, Ken Smith, Clarity's Group Managing Director, said:
'We are very grateful for this short-term funding support whilst a more
substantial fundraising is concluded. The Company will be writing to
shareholders shortly in this regard These phased injections of working capital
represent significant steps in the Company's turn around strategy .'
For further information, please contact
Ken Smith, Group Managing Director (Please call Jacquie Mitchell)
Clarity Commerce Solutions plc 01932 778001
Fiona Kindness
Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414
Ian Callaway
SVS Securities plc (Broker) 020 7638 5600
This information is provided by RNS
The company news service from the London Stock Exchange MBPP
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