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Vyke Communications (VYKE)

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Thursday 18 November, 2010

Vyke Communications

Discretionary working capital

RNS Number : 3874W
Vyke Communications PLC
18 November 2010
 



18 November 2010

 

Vyke Communications plc

("Vyke" or the "Company")

 

Discretionary working capital facility

 

Vyke Communications plc (AIM: VYKE), the mobile Voice over Internet Protocol provider, announces that following the successful conclusion of discussions with BLS Telecom LLC ("BLS") as announced on 30 September 2010, it has entered into a discretionary working capital facility with BLS (the "Working Capital Facility").

 

The terms of the Working Capital Facility enable Vyke to drawdown up to US$ 500,000 in tranches, subject to BLS's discretion. Interest will accrue on any sums advanced to Vyke under the Working Capital Facility at the rate of 8% per annum and will be payable on the date the repayment of the Working Capital Facility in full. Subject to earlier repayment as a result of certain specified events of default, including if Mohammad Asif (or another director appointed by Bonjour Europe Limited ("Bonjour") under the joint venture agreement entered into between Bonjour and Vyke on 11 July 2010 (the "Joint Venture Agreement")) ceases to be the CEO of Vyke or the Joint Venture is terminated, the Working Capital Facility is repayable on 17 February 2011.

 

Given BLS's relationship with the Company, the Working Capital Facility is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Leonard Carone, Sumeet Bhatt and Bob Passantino who are each senior managers of BLS), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

 

Mohammad Asif, Chief Executive of Vyke, said: "We are delighted that the Board of BLS continues to show its commitment to Vyke further demonstrating its belief that Vyke has an attractive platform through which BLS intends to direct telecoms traffic. We have now concluded extensive and successful testing of these services.  Bonjour (through BLS and its affiliates) is determined to deliver on its obligations under the joint venture agreement and Vyke looks forward to being in a position to provide further updates to the market at the appropriate time."

 

----ends----

 

 

- For further information please contact: Vyke Communications plc

 

Vyke Communications

Mohammad Asif, Chief Executive

 

 

+44 20 3137 1560



Allenby Capital Limited

+44 20 3328 5656

Nominated Adviser

Brian Stockbridge / Alex Price






Threadneedle Communications

+44 20 7653 9850

Graham Herring / Terry Garrett

 

 

 About VYKE

 

Vyke Communications plc is a mobile Voice over Internet Protocol ("VoIP") provider and is headquartered in the UK.. The strategic goal of Vyke is to combine its expertise in VoIP-based communication systems, mobile data service creation/handset technology and wholesale carrier network management to provide a converged communication solution. Vyke's current set of mobile-oriented products offers up to a 98% discount compared to current typical mobile operator pricing structures.

 

About VYKE MOBILE IP

 

Vyke Mobile IP is the leading mobile-oriented Voice over IP (VoIP) service offering users up to 98% discount compared to typical mobile operator pricing structures. One of the first mass market mobile VoIP services, launched in April of 2006, Vyke Mobile IP features mobile oriented sign-up steps, automatic configuration services and pricing.

 

About the VYKE product suite

 

The Vyke suite of communication products features advanced services providing users with low cost, mobile operator/fixed line provider independent ways of making voice calls and sending text messaging from the mobile phone, PC and internet.

 

Please visit www.vyke.com

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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