GEM Global Yield Fund Provides Clear Leisure Credit Line
Clear Leisure announced it signed a two-year, £10 million ($16 million) equity line of credit with GEM Global Yield Fund Limited.
Proceeds will go toward working capital and to further explore potential acquisition targets. The company may also use the facility the financing to support the debt restructuring proposal for Mediapolis, which the board believes may significantly increase the company’s negotiating power with potential investors or buyers of its Mediapolis project.
The cost of the credit line is £135,000 ($224,140), which is to be paid on the earlier of the sale of a material asset, the first drawing of credit under the equity line and six months after the date of the agreement whereby 50% becomes payable with the balance falling due 12 months after the date of the agreement. The company will also provide GEM with 11.5 million, five-year warrants at a price of 4.4 pence per ordinary share.
As part of the agreement, Alfredo Villa, a director of the company, has provided security for the drawn down period over his shares in Clear Leisure Plc. The granting of such security is considered to be director’s dealing and, pursuant to Rule 13 of the AIM Rules, a related party transaction.
As a result of the granting of the security, there is no change to Villa’s overall shareholding of 28,279,039 ordinary shares, representing 14.2% of the issued share capital of the company. The issued share capital of the company comprises 199,409,377 ordinary shares of 2.5p per share.
GEM is a member of a $3.4 billion alternative investment group with offices in London, New York, Paris and Hong Kong that manages a diverse set of investment vehicles, primarily focused on emerging markets across the world. To date, the GEM group has invested in more than 300 companies across 65 countries, including a number of AIM listed companies.