Shares in RC365 Holding PLC (LSE:RCGH, FRA:L2G), fell 6% to 2.44p after it announced it had secured a £2.25 million funding package, combining a £750,000 placing with an interest-free standby credit facility backed by its chief executive and substantial shareholder.
The fintech and payment services group said the facility, worth up to US$2.0 million, has been agreed between one of its wholly owned indirect subsidiaries and LYS Limited, a company wholly owned and controlled by executive director and chief executive Chi Kit Law.
RC365 said the facility is unsecured, interest-free and carries no commitment, arrangement or utilisation fees. It has an initial 24-month term, with drawdowns available on at least three business days’ notice and subject to the lender’s funding availability.
The company also raised around £750,000 before expenses through the placing of 34,090,909 new shares at 2.2p each. It will issue 2,386,364 broker warrants to Bowsprit Partners, exercisable at the placing price for three years from admission.
RC365 said the funding package will provide additional financial flexibility to support platform development, scale revenue-producing opportunities from new customers and cover general corporate purposes.
