LONDON (Alliance News) - Wearable technology company Fitbug Holdings PLC Monday said it has raised GBP1.7 million through the placing of shares, a share subscription, and the issue of a convertible loan note, and said it has restructured all of its existing loans on favourable terms.
The company said it intends to invest the funds raised into enhancing its products and marketing, and into increasing sales of its integrated wearable technology products.
Fitbug raised GBP665,000 through the placing of 26.6 million new shares at 2.5 pence, and GBP350,000 through a share subscription for 14 million new shares at the same price by NW1 Investments Ltd. Shares in the company closed at 4.11p last Friday.
Additionally, it has agreed terms on a new GBP650,000 convertible loan note with NW1 Investments, repayable by July 31. The loan is convertible into 20 million shares in Fitbug at a price of 3.25p.
Fitbug also said it has restructured its existing loans with NW1 Investments. Under the new terms, GBP665,000 of the loans will become interest free and repayable by end-July 2018, with the GBP6.27 million balance of the loans becoming repayable at end-July 2017 with an interest rate of 2.5%. These loans were previously repayable at the end of July 2016 with an interest rate of 5%.
The company also has restructured its existing loans with Kifin Ltd, extending the term of a GBP500,000 loan to become repayable at the end of July 2017, with an interest rate of 2.5%, and reducing the interest rate on GBP500,000 of convertible loan notes issued to Kifin to 2.5%. Both loans previously carried an interest rate of 5%. No interest will be payable on either for the remainder of 2015.
Fitbug expects to see an interest saving in 2015 of around GBP300,000.
The company said that its Fitbug Orb has been seeing "considerable success", and retail response to its products has "been strong".
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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