WEBIS HOLDINGS PLC
Webis agrees further Term Loan for USA Bonds (“Loan”)
The Board of Webis, the Group specializing in pool wagering and the operators of Cal Expo, the Californian harness track, as part of the on-going strategy to protect its USA operating licenses, has agreed a Term Loan on behalf of its wholly owned subsidiary, Watch & Wager Inc (“W&W”) for the sum of US$350,000 from Galloway Limited (“Loan”).
At present, W&W is licenced in the following US states: California, New York, North Dakota, Maryland, Minnesota, Kentucky and Washington, as well as additional wagering licences in the USA, Canada, Hong Kong, United Kingdom, Ireland, France, South Africa, and India amongst other jurisdictions. The majority of these licences are supported by cash-backed Bonding Agreements and, together with the proceeds of the Loan, Webis holds approximately US$ 1 million cash deposits for this purpose.
The Board of Webis considers the expansion of key US licenses to be central to the development of the W&W strategy, namely the acceptance of wagers via its principal website watchandwager.com, mobile product and its high-volume direct wagering protocol in approved licensed jurisdictions. The Loan will allow W&W to pursue new licenses as required.
The Loan carries a coupon 7.0% for a term of five years and is secured against all the unencumbered assets of Webis.
Denham Eke, the non-executive Chairman of Webis, is a director of Galloway Limited and both he and Nigel Caine, a non-Executive Director, are directors of Burnbrae Group Limited of which Galloway Limited is a wholly owned subsidiary and which is an indirect 63.1 per cent. shareholder in Webis. Accordingly, as a Related Party Transaction under AIM Rules, the independent Directors (being Ed Comins and Sir James Mellon), having consulted with the Company’s Nominated Adviser, consider the terms of the Loan are fair and reasonable in so far as Webis’s shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.