Loan Agreement and Issue of Equity

RNS Number : 5246J

Synchronica PLC

30 June 2011

 

30 June 2011

Synchronica plc

GC-Global Capital Corp. and Synchronica plc enter into C$500,000 Loan Agreement

Issue of Equity

Royal Tunbridge Wells, United Kingdom / Toronto, Canada - Synchronica plc ("Synchronica") (AIM: SYNC) (TSX Venture: SYN) and GC-Global Capital Corp. (TSX Venture: GDE.A) ("GC-Global") are pleased to announce the completion of an additional secured loan (the "Loan") to the Company in the principal amount of C$500,000. The net proceeds of the Loan shall be used for working capital requirements.

The Loan matures 29 August 2011 and bears interest at 1.25 per cent per month, payable monthly. As consideration for providing the Loan, GC-Global  wereissued 200,000 new ordinary (common) shares in Synchronica ("New Shares") and 285,714 share warrants, (exercisable at C$ 0.35 each for three years subject to accelerated expiry provisions) which will vest only if the loan is not repaid by the maturity date. The New Shares issued pursuant to the Loan will be subject to resale restrictions for a period of four months from the closing date under applicable securities legislation. The New Shares represent a 0.13 per cent dilution of Synchronica's outstanding shares.

GC-Global acted previously as lead lender in a loan transaction, announced in February 2011, and is now providing C$ 450,000 of the Loan with a related party, the GC-Global Capital Lending Partners Limited Partnership fund for C$ 50,000.

Application has been made to the London Stock Exchange for the New Shares to be admitted to trading on AIM ("Admission"). It is expected that such Admission will occur at 8.00 am on 1 July 2011.

Following Admission of the New Shares, the issued ordinary share capital of the Company will consist of 98,114,058 ordinary shares of 15 pence each with one voting right per share. There are no shares held in Treasury.

Enquiries:

Synchronica plc	Carsten Brinkschulte, CEO	[phone]
	Angus Dent, CFO	[phone]
www.synchronica.com	Nicole Meissner, COO	[phone]
Northland Capital Partners
(Nominated Adviser)	Shane Gallwey/Rod Venables	[phone]
(Corporate Broker)	Katie Shelton	[phone]
Walbrook PR Limited		[phone]
(media enquiries)	Paul McManus	[e-mail]
(investor enquiries)	Paul Cornelius	[e-mail]

About Synchronica plc

Synchronica plc is a leading developer of next-generation mobile messaging solutions based on open industry standards. The award-winning product portfolio includes the flagship product Mobile Gateway, providing push Email, synchronization, instant messaging (IM), backup and restore, and mobile connectivity to social networks. Synchronica's products are white-labelled and offered by mobile operators and device manufacturers in emerging and developed markets to provide mass market messaging services, increasing data revenues and reducing churn.

Synchronica Mobile Gateway provides a unique multi-protocol gateway combining Push IMAP, SyncML, ActiveSync, Email-to-MMS, and Email-to-SMS, delivering messaging services to literally any mobile phone currently in the market without requiring an additional client to be downloaded. Expanding instant messaging to mobile devices, Mobile Gateway establishes carrier-branded IM communities, using the industry standard XMPP and provides gateways to popular internet IM communities, connecting any IMPS-enabled handset. With the recent acquisition of Iseemedia, Synchronica will enable the fast delivery of rich email attachments with advanced streaming that reduces network bandwidth consumption by as much as 90 percent.

Headquartered in England, Synchronica also maintains development centres in Germany and the Philippines in addition to a regional presence in the USA, Hong Kong, Madrid and Dubai. Synchronica plc is a public company traded on the AIM list of the London Stock Exchange (SYNC.L). For further information, please visit www.synchronica.com.

About GC-Global Capital Corp.

Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology.  For further information, please contact Jason G. Ewart at [phone] or visit GC-Global's website at www.gcglobalcapital.ca.

Cautionary Statements

The foregoing information may contain forward-looking statements relating to the future performance of Synchronica plc. Forward-looking statements, specifically those concerning future performance or results, are subject to certain risks and uncertainties, and actual results may differ materially from Synchronica's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the public filings and announcements made by Synchronica, including those made with AIM, a market of the London Stock Exchange, with the TSX Venture Exchange or with securities regulators.  Synchronica does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of this release.   No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

 

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