Venture Lending Loan approval

RNS Number : 5957F

Messaging International Plc

18 June 2012

 



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

Messaging International Plc ('the Company')

Approved for new US$1,000,000 Venture Lending Loan

Messaging International Plc, the AIM traded developer of messaging solutions, through its wholly owned subsidiary TeleMessage Ltd, has yesterday signed a US$1,000,000 venture lending loan to its 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 will withdraw the full amount until 18 June 2012, with repayments in 36 instalments. The interest rate on the loan is the London Interbank Offered Rate plus 5.5%.

In addition, as part of the agreement, the Company will grant to Mizrahi Tefahot Bank Ltd 3,896,804 warrants exercisable at any time from grant to 17 June 2017. The warrants are exercisable at a price of 0.63p per share representing the average closing price of an ordinary share in the capital of the Company during the last 30 days of trading less 0.2p.

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 years, 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 continuous support of such a well-established institutional bank is testament to the quality of products and business that we have developed at Messaging International."

**ENDS**

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]

Catherine Leftley                     Seymour Pierce Limited                         Tel: [phone]

Elisabeth Cowell                     St Brides Media & Finance Ltd             Tel: [phone]

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 converged messaging products and services for carriers and enterprises that deliver Text, Voice, Video and Multimedia messages to and from any communication device. Send, receive, and manage SMS, MMS, IP, Voice, Fax and E-mail messages from the Internet, E-Mail clients, iOS/Android Smartphones and Tablets, Fixed or Mobile phones and APIs. The Company has a number of contracts with major blue chip companies including Sprint, one of the largest wireless providers in the US, Rogers Wireless, the largest wireless provider in Canada, and many more.

 

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