Galleon Holdings PLC New Croco Agreements & Loan Facility (8686W)

TIDMGON

RNS Number : 8686W

Galleon Holdings PLC

01 February 2013

1 February 2013

Galleon Holdings plc

("Galleon" or the "Company")

New Croco Agreements & Loan Facility

Galleon Holdings plc (AIM: GON), the AIM-quoted entertainment media company, announces that its product division Croco has secured licensing agreements totalling US$1.2m payable in stages over the next eighteen months for a number of products licensed to an existing customer. This further diversifies the Company's services and revenue streams going forward.

The Company has also agreed a new loan facility with Medical Consultant and Management Limited ("MCM") to replace the existing GBP1m loan facility entered into on 26 January 2012 with Imagination Holdings Limited ("Imagination") which has assigned the outstanding balance at 31 January 2013 of GBP400,000 to MCM.

The new loan facility is for up to GBP500,000 secured against the licensing agreements outlined above and is for a term expiring on 15 January 2014. The maximum amount outstanding on the loan cannot exceed 87.5% of the balance outstanding on the above licensing agreements. An interest rate of 2% calculated on the outstanding balance each month, on a pro rata basis, is payable monthly. An arrangement fee of GBP20,000 is payable to MCM with GBP10,000 payable immediately and the remaining GBP10,000 payable on 31 July 2013.

David Wong is a director of Galleon and Imagination and his family are the beneficiaries of MCM, which is a trust. Pritesh Desai is a director of Galleon and Imagination. The new loan facility agreement is therefore a related party transaction as defined in Rule 13 of the AIM Rules for Companies.

The Directors independent of MCM and Imagination consider, having consulted with Cairn Financial Advisers LLP as nominated adviser, that the terms of the loan facility are fair and reasonable insofar as Galleon's shareholders are concerned.

Enquiries:

 
 Galleon Holdings plc 
  Hayden Eastwood, Chief 
  Financial Officer                [phone] 
 Nominated Adviser 
  Cairn Financial Advisers 
  LLP 
  James Caithie / Avi Robinson     [phone] 
 

Notes to Editors:

ABOUT GALLEON HOLDINGS

Galleon Holdings plc is primarily a publisher of digital content in China across both online and mobile platforms. It also has a Product IP Division that provides innovative marketing devices for fast moving consumable goods and an Entertainment Division that develops multi-platform branded formats designed to establish a direct, interactive relationship with the viewer.

This information is provided by RNS

The company news service from the London Stock Exchange

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