MoneySwap Plc Update on refinancing (9862U)

TIDMSWAP

RNS Number : 9862U

MoneySwap Plc

24 January 2017

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

24 January 2017

MoneySwap plc

("MoneySwap" or the "Company")

Update on refinancing - short term loan

Further to recent announcements regarding the Company's refinancing activities, Moneyswap announces that the Company has today entered into a short-term loan agreement (the "Loan Agreement") with Broad Rivers International Limited ("Broad Rivers"). Broad Rivers is a substantial shareholder in Moneyswap.

The Loan Agreement provides for a total unsecured loan facility of USD 500,000 to be made available by Broad Rivers to Moneyswap for the purpose of providing working capital to the Company to meet its short-term requirements, ahead of Moneyswap completing a major refinancing which is likely to result in a third party acquiring in excess of 51% of the Company's issued share capital.

Under the terms of the Loan Agreement, any amounts drawn down will carry interest at 5% per annum, payable on repayment of the loan. Amounts drawn down under the Loan Agreement are at the discretion of Broad Rivers being satisfied that the funds are required to meet the urgent financial commitments of the Company. All amounts drawn down under the Loan Agreement are due for repayment at the earlier of 31 March 2017 or on the completion of a major refinancing of Moneyswap. The Company has today drawn down the first USD100,000 of the facility in order to meet immediate working capital needs.

As set out in earlier announcements, discussions continue with a number of parties in relation to a more substantial refinancing and further announcement will be made in due course. The Company's shares were suspended from trading on AIM on 21 September 2016, as it was unable to publish its audited accounts for the year ended 31 March 2016 by 30 September 2016. If the suspension of the Company's shares is not lifted within six months of the suspension date, trading in the Company's ordinary shares will be cancelled from AIM.

As Broad Rivers is substantial shareholder in the Company, the entering into of the Loan Agreement constitutes a related party transaction under the AIM Rules. The Directors of MoneySwap, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider the terms of the Loan Agreement to be fair and reasonable insofar as the Company's shareholders are concerned.

- Ends-

For further information, please contact:

 
 MoneySwap Plc             Allenby Capital Limited 
------------------------  ------------------------ 
 Interim Chief Executive   Nominated Adviser 
------------------------  ------------------------ 
 Craig Niven               Nick Naylor 
                            James Reeve 
------------------------  ------------------------ 
 [phone]           [phone] 
------------------------  ------------------------ 
 

About MoneySwap (www.moneyswap.com)

MoneySwap provides payment solutions and gateways to merchants, which allow both online and point of sale transactions to be settled using UnionPay cards in the UK. In addition, UnionPay has licensed MoneySwap for its MoneyExpress service, which enables overseas persons to send funds directly to UnionPay cardholders in China. The Company also offers an online peer-to-peer platform for currency exchange and payments. The Company's shares are traded on the London Stock Exchange's AIM market (AIM: SWAP). More information can be found at www.moneyswap.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 24, 2017 09:02 ET (14:02 GMT)