Venture Lending Loan

RNS Number : 1587D

Messaging International Plc

26 January 2015

 



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 ("TeleMessage"), has yesterday signed a US$1,000,000 venture lending loan to its subsidiary TeleMessage from Mizrahi Tefahot Bank Ltd ("Mizrahi"), 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 TeleMessage.

Under the terms of the agreement, TeleMessage can access this debt facility and will withdraw the full amount until 31 June 2015, with repayments in 36 instalments. The interest rate on the loan is the London Interbank Offered Rate plus 6%.

The new loan replaces the previous loan signed in June 2012 with the amount left on the 2012 loan of approximately $150,000 will be repaid.

In addition, as part of the agreement, the Company will grant to Mizrahi 4,500,000 warrants exercisable at any time from grant to 24 January 2020. The warrants are exercisable at a price of 0.91p per share representing the average closing price of an ordinary share in the capital of the Company (as derived from the AIM Appendix to the Daily Official List) during the 30 days immediately prior to the signing of such warrant (but not including).

The Company has also extended the exercise period of the 3,896,804 warrants, granted to Mizrahi under the agreement signed in June 2012, from 17 June 2017 to 24 January 2020. (All previous 15,148,812 warrants granted to Mizrahi in 2008 expired in August 2014.)

Guy Levit, CEO of Messaging International Plc, said, "TeleMessage is committed to developing innovative, cutting-edge products and services for customers worldwide. Our new secure business mobile messaging platform demonstrates the value of business-friendly messaging tools that achieve the ease of use that consumer apps provide, like WhatsApp and Viber, but with businesses requirements including advanced security features, administrative capabilities and ability to integrate with other applications and systems. These additional funds will assist us in improving our business mobile messaging solutions, and bolster our sales and marketing efforts in order to leverage our presence in the enterprise messaging space. This growth potential has clearly been recognised by Mizrahi through the thorough due diligence it conducted on the Company. Gaining the continuous support of such a well-established 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                              Cantor Fitzgerald Europe                      Tel: [phone]

Catherine Leftley                      Cantor Fitzgerald Europe                      Tel: [phone]

Messaging International Plc joined AIM in August 2005.  Its 100% owned subsidiary, TeleMessage Ltd (www.telemessage.com), delivers smart and secure messaging seamlessly over any communication device. Designed specifically for mobile operators and enterprises, the enterprise and VAS consumer solutions intelligently and seamlessly handle text, voice, data, and multimedia messages as well as IP messaging via Smartphone push notifications or RCS over mobiles, tablets, the web, Office, APIs and IT infrastructure.  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.

 

END

 

 

MSCPGUBGGUPAGAQ