News and Announcements
YuuZoo Corporation Secures SG$30 million Capital Commitment from GEM Global
- Published September 07, 2015 2:40PM UTC
- Publisher Wholesale Investor
- Categories Company Updates
Singapore, September 7, 2015
YuuZoo Corporation Limited, (“YuuZoo” or “the Company“) the SGX main board-listed social e-commerce & payments company (SGX: AFC.SI), is pleased to announce that it has secured access to a SG$30 million funding facility. Under an agreement signed 4th September, 2015 (the “Agreement”), GEM Global Yield Fund (“GEM Global“), the New York based private alternative investment group, has agreed to provide the Company with up to SG$30 million over the next three years.
This SG$30 million will be in the form of a Capital Commitment which allows YuuZoo to drawdown funds during the three year term of the Agreement by issuing ordinary shares to GEM Global at a price per share which represents a 10% discount on the closing price of YuuZoo shares on the date such drawdown is requested by YuuZoo.
YuuZoo has no obligation to draw on the funds on offer and will control the timing and maximum amount of any drawdown under this facility subject to a requirement that GEM Global holding of YuuZoo shares is not to exceed 19.9% of YuuZoo shares on issue.
YuuZoo has also agreed to issue 55 million warrants to GEM Global each carrying the right to subscribe for one new ordinary share in the Company. The warrants will be issued within 60 days of the Company obtaining shareholder approval for the Agreement. The warrants will be exercisable for a period of five years from the issue date at an initial exercise price of SGD0.70 each which will reset to 110% of the share price after 12 and 24 months from the date of the Agreement.
YuuZoo will pay GEM Investments America LLC, an associated company of GEM Global, a one off Commitment Fee of SGD450,000 (1.5% of the total facility).
The Agreement is supported by a share lending arrangement whereby shares controlled by Thomas Zilliacus are lent to GEM Global at no cost to YuuZoo during the period between YuuZoo making the drawdown request and the issue of shares under the Agreement.
The Agreement is subject to both SGX-ST approval for the listing and quotation of the shares to be issued to GEM Global under the Agreement and to YuuZoo’s shareholders approval to enter into the Agreement. The Company will seek SGX approval in-principle for the listing and quotation of the shares and convene an EGM to seek shareholders approval in due course.
To read the full announcement, please click here.