Financing Facility

    RNS Number : 7866G
  Vycon Inc
  28 October 2008
   

    Vycon, Inc ('the Company')

    Financing Facility


    Vycon, Inc today announces that three of its substantial shareholders have together made a loan of US$1.0 million ("the Bridge Loan") to
the Company. As announced in its interim results on 29 September 2008, the Company continues to work on plans to issue a convertible loan
note ("the Convertible Loan Note"). 


The Bridge Loan is intended to convert into the Convertible Loan Note upon final closing of that Note, and will provide interim funding
whilst those plans are finalised. BankInvest, Cooper Capital and the Cabayan Family Trust, each of whom are substantial shareholders in
Vycon, are each contributing US$333,333 under the Bridge Loan. 

    Specific terms of the Bridge Loan include:
    *     term of up to 12 months, secured by a second lien over the Company's assets; 
    *     interest rate of 10% per annum, which may be paid in cash or by conversion into the Convertible Loan Note, at the option of the
lender; 
    *     automatic conversion into the Convertible Loan Note once the Company has raised US$3.0 million pursuant to that Note; 
    *     issuance of warrants, pro-rata to each lender, to purchase an aggregate of 466,473 Common Shares at 25 pence, exercisable during
the next five years.  

    The Bridge Loan is a related party transaction as defined in the AIM Rules. The directors, with the exception of Jens Mathiesen and
Peter Cooper (who are deemed to be involved in the transaction by virtue of their interest in BankInvest and Cooper  Capital respectively)
consider, having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, that the terms of the
transaction are fair and reasonable insofar as shareholders are concerned.

    David Potter, Non Executive Chairman commented:

*I am pleased by the continued support demonstrated by our major shareholders in making this facility available. Plans for the Convertible
Loan Note are progressing and we will be announcing further details shortly. It is the intention of the Board that all shareholders will be
provided the opportunity to participate in the Convertible Loan Note.*
 

    Enquiries:

    Vycon, Inc:
    Vatche Artinian                                         Tel:     [phone]
    Craig Glynn                                                      001 714 386 3800

    Smith & Williamson Corporate Finance Limited:
    Barrie Newton                                           Tel:     [phone]
    Nick Reeve                                                       [phone]
    Martyn Fraser                                                    [phone]

    Cardew Group:
    Rupert Pittman                                          Tel:     [phone]
    Shan Shan Willenbrock

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