Approved for Venture Lending

RNS Number : 5629B

Messaging International Plc

18 August 2008

 



Messaging International Plc / Market: AIM / Epic: MES / Sector: Technology

18 August 2008 

Messaging International Plc ('the Company')

Approved for US$750,000 Venture Lending Loan 

Messaging International Plc, the AIM traded provider of innovative messaging services, has agreed a US$750,000 venture lending loan to its wholly owned subsidiary TeleMessage Ltd from Mizrahi Tefahot Bank Ltd, one of Israel's largest banks. This loan will be used for general working capital and the development of new innovative products and services by the Company's wholly owned subsidiary, TeleMessage Ltd.

Under the terms of the agreement, the Company can access this debt facility and withdraw the full amount in tranches until 30 June 2009, with repayments in 24 instalments from the date of each tranche. The interest rate on the loan is the London Interbank Offered Rate plus 4.5%. Mizrahi Tefahot Bank Ltd has also approved an additional $50,000 credit facility should the Company require further funding to support its growth strategy.

In addition, as part of the agreement, the Company will grant to Mizrahi Tefahot Bank Ltd warrants to the value of £100,000, exercisable at any time from grant to 13 Aug 2014. The first £50,000 value of warrants are exercisable at a price of 0.65p per share and the second £50,000 value of warrants are exercisable at the average closing price of an ordinary share in the capital of the Company during the first 90 days of trading commencing on 14 Aug 2008 (with such exercise price being subject to a minimum of 0.65p and maximum of 1p per share).  A payment mechanism is included within the warrants whereby, in certain circumstances, a cash alternative payment of up to US$175,000 can be made by the Company in exchange for these warrants.  Under the terms of the warrants, in certain circumstances the exercise price of the warrants is subject to adjustment.  

Guy Levit, CEO of Messaging International Plc, said, 'TeleMessage is committed to developing innovative, cutting-edge products and services for our customers worldwide, and this venture lending will further assist us in these efforts while also affording the company added flexibility in the timing of sales and marketing activities. I am confident that these additional funds will support and further drive the growth that the Company has achieved over recent months, as the products and services developed by TeleMessage gain recognition by blue-chip operators and their users worldwide. This growth potential has clearly been recognised by Mizrahi Tefahot Bank through the thorough due diligence it conducted on the Company. Gaining the support of such a well established institutional bank is testament to the quality of products and business that we have developed at Messaging International.'

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For further information visit www.telemessage.com or contact:

Guy Levit	Messaging International Plc	Tel: + 972 3 9225252
Mark Percy	Seymour Pierce Limited	Tel: [phone]
Isabel Crossley/ Susie Callear	St Brides Media & Finance Ltd	Tel: [phone]

Notes

Messaging International Plc: Messaging International Plc joined AIM in August 2005 with the objective of becoming a leading provider in the rapidly growing multimedia messaging market. Its 100% owned subsidiary, TeleMessage Ltd (www.telemessage.com), provides cross-platform media messaging management systems and applications. These are designed to enable PC, browser, mobile phone and wireline telephone users to send, receive and manage voice messages, email, SMS, IM and MMS across various media platforms. It supports multiple languages, text to speech conversion, e-mail notification, unlimited SMS length, and direct reply to SMS capabilities, all illustrating the uniqueness of the service. The Company has a number of contracts with major blue chip companies including Rogers Wireless, the largest wireless provider in Canada and Sprint/Nextel, one of the largest wireless providers in the US.

 

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