07 Sep YuuZoo Corporation secures SG$30 million Capital Commitment from GEM Global
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.
Thomas Zilliacus, Executive Chairman and Chief Executive Officer of YuuZoo, said, ‘This arrangement gives YuuZoo some strong options and alternatives regarding capital requirements as it secures funding for continued growth and development of the Company over the next three years. This capital commitment places YuuZoo in a strong position to continue its expansion plans. While YuuZoo already has a strong balance sheet, in an unpredictable financial world, the Board deems it prudent to put in place a funding line to give greater flexibility for future growth.’
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About GEM Global:
GEM (www.gemny.com), was founded in 1991. GEM is a US$3.4 Billion alternative investment group having completed 365 transactions in 65 countries. The firm manages a diverse set of investment vehicles across the world. GEM’s funds include: CITIC/GEM Fund; Kinderhook; GEM Global Yield Fund; GEM India and VC Bank / GEM Mena Fund*.
(*GEM exited both its LP and GP stakes in Q1 2010.)
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 110 million users in 164 countries, YuuZoo uniquely combines social networking, e-commerce and games in a mobile-optimized, fully localized virtual shopping mall, where the consumer can access hundreds of targeted social networks, targeted shops and targeted entertainment through a single login. All networks are localized for each market for language as well as for merchandise and design. To see the networks, log into: www.yuuzoo.com. For more information about YuuZoo, please log on to: www.yuucorp.com
For more information, please contact:
Aru Adil Sayed
Head of Corporate Communications
DDI: +65-6577 0666
Mobile: +65-9424 9757
Warren P. Baker
DDI: +33 (1) 5353-2010
Macquarie Capital (Singapore) Pte. Limited was the financial adviser to W Corporation Limited (now known as YuuZoo Corporation Limited) in relation to the acquisition of the entire issued and paid-up share capital of YuuZoo and its subsidiaries. Macquarie assumes no responsibility for the contents of this announcement.