|32 Red Online Casino, poker room and sportsbetting company, has undergone a financial restructuring initiative, by renegotiating its banking facility with Royal Bank of Scotland.|
A revised loan facility with RBS has been entered into by the online gambling group for £3.5 million, ensuring the continuation of a 'constructive relationship' with the bank and using its revised gearing to form a sound financial platform for the next phase in the company's development.
32 Red online casino also proposes to raise £3 million, before expenses, by way of a placing with institutional and other investors. The institutional part of the placing has been fully underwritten by Numis Securities Limited.
The agreement with RBS is subject to shareholder approval being given for the placing at the company’s AGM to be held on 10 April 2007. RBS will also be receiving a warrant to subscribe for 560,000 ordinary shares in the company at 1p per share, in lieu of receiving banking fees associated with the loan.
12 million new Ordinary Shares at 25 pence per share will be offered. Numis, as agent for the company, has agreed conditionally to obtain subscribers for the placing shares. The placing shares will represent 17.43 percent of the 32 Red's enlarged issued share capital.
Commenting on the refinancing Ed Ware, Chief Executive Officer, said: “We are pleased that we have been able to successfully re-negotiate our banking facilities. With this completed and the recent new appointments of Martin Saunders and Jon Hale to the management team, we look forward to delivering on our plans to integrate the BetDirect business that we outlined at the time of the acquisition.”