By Sheri Kasprzak
New York, March 22 - Bits Corp. plc said it concluded a £1,532,000 private placement of stock and secured £1.5 million from a convertible loan facility.
The company issued 10,213,333 shares at 15p each.
Proceeds from the stock deal will be used for the company's entry into the online gambling industry. Any remaining funds will be used for working capital.
Also, Bits entered into a two-year standby convertible loan facility with Headstart Global Fund Ltd., initially for £1 million with an option to increase by £500,000.
The 7% loan facility allows Bits to convert the loan into equity at any time for one year from the date of draw.
The investor will receive warrants for 400,000 shares, exercisable at 22.2p each, a 20% premium to the closing bid price of 18.5p on March 21.
Based in London, Bits is moving into the online gaming industry.
| Issuer: | Bits Corp. plc
|
| Issue: | Stock
|
| Amount: | £1,532,000
|
| Shares: | 10,213,333
|
| Price: | 15p
|
| Warrants: | No
|
| Settlement date: | March 22
|
| Stock symbol: | London: BIT
|
| Stock price: | 18.31p at close March 22
|
|
|
| Issuer: | Bits Corp. plc
|
| Issue: | Convertible loan facility
|
| Amount: | £1.5 million
|
| Tenor: | Two years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Warrants: | For 400,000 shares
|
| Warrant strike price: | 22.2p
|
| Investor: | Headstart Global Fund Ltd.
|
| Settlement date: | March 22
|
| Stock symbol: | London: BIT
|
| Stock price: | 18.31p at close March 22
|
|
|
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