- Release Date: 30/09/13 16:48
- Summary: GENERAL: SDL: Bank Debt Amendment and Capital Raising
- Price Sensitive: No
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SDL 30/09/2013 13:48 GENERAL REL: 1348 HRS Solution Dynamics Limited GENERAL: SDL: Bank Debt Amendment and Capital Raising Solution Dynamics Limited Bank Debt Amendment and Capital Raising While SDL returned to compliance with its bank covenants prior to FY2013 financial year end, a number of customers and prospective customers have nevertheless raised concerns around the strength of the company's balance sheet. The Directors believe SDL's financial position is steadily improving following the mid-FY2013 restructure but these customer concerns create unacceptable revenue risks to the business. Accordingly, the Directors are taking two actions to improve the balance sheet: 1. Move a portion of SDL's bank debt from current liability to term liability. The company's bankers have agreed to move $250,000 of SDL's debt to a three-year, fixed-term loan. This improves SDL's working capital position. 2. Raise $200,000 of new equity capital by way of a placement to professional or habitual investors. The placement will be undertaken at $0.19 cents which is approximately the six-month VWAP (volume weighted average price) and near to the levels where recent transactions of large volumes of SDL shares have occurred. There is no underwriting fee associated with the placement (the only costs are legal costs). The actions will improve the working capital position, provide balance sheet strength comfort to existing customers and support clearly identified new business. In addition, and subject to both the satisfactory completion of the terming out and a successfully completed $200,000 capital raising, the company and group audited financial statements for the year ended 30 June 2013 are likely to see an emphasis matter paragraph that was issued in 2012, in relation to going concern, being removed. The Directors believe strengthening the balance sheet, mitigating revenue retention risk and facilitating new client revenues is an appropriate course of action and in the best interests of all shareholders. The process of documentation for terming out the bank debt and obtaining commitments for the capital raising is expected to take approximately three days. For further information, please contact: John McMahon Nelson Siva Chairman Chief Executive Officer +61-410-411 806 +64-21-415 027 End CA:00241782 For:SDL Type:GENERAL Time:2013-09-30 13:48:20
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- Ann: GENERAL: SDL: Bank Debt Amendment and Capita
Ann: GENERAL: SDL: Bank Debt Amendment and Capita
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