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TRAC t42 IoT Tracking Solutions News Story

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REG - T42 IOT Tracking Sol - Financial Update

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RNS Number : 8797J  T42 IOT Tracking Solutions PLC  15 December 2022

 

15 December 2022

 

t42 IoT Tracking Solutions plc

("t42" or the "Company")

 

T42 Financial Update

t42 IoT Tracking Solutions plc (AIM: TRAC) ("t42" or the "Company"), the
provider of global shipping container tracking solutions, announces that it
has raised c. US$611k (gross) through a combination of debt and equity
subscriptions, and arranged settlement of a further c. US$328k of supplier
debt through a convertible loan, as detailed further below. The new funding
will be used to strengthen the Company's balance sheet as well as to support
its future growth.

Debt Facility

The Company has, through its wholly-owned subsidiary T42 Limited, entered into
a loan agreement ("Agreement") with CSS Alpha Global Pte Ltd ("CSS") for the
provision of a 12-month secured US$500,000 debt facility ("Facility"), to
support manufacturing commitments and working capital needs. The Agreement
provides, inter alia, for interest at 2 per cent per month, with 9 monthly
repayments starting 3 months after drawdown. Security is by way of a second
charge on assets, a personal, guarantee from Avi Hartman, CEO, limited to 20
per cent of the loan and a deposit with CSS of 3,000,000 new t42 shares
("Deposit Shares"). In addition, warrants for a total of 2,976,185 shares in
t42 have been issued to CSS, exercisable at 7p per share over 5 years. The
Facility includes representations and warranties by the Company that are
customary for an agreement of this nature. The Agreement is subject to Mr
Hartman not resigning as CEO of T42 Limited during the term of the Facility.
There is no penalty for prepaying the Agreement at any time.

 

Convertible Loan

The Company has issued a £265,000 convertible loan note ("CLN") to a
supplier, to be applied in lieu of settlement of a supplier debt, assisting
with the Company's cashflow management. The CLN bears interest at 3% per
annum, payable quarterly, and is repayable by 31 December 2024. The CLN is
convertible at 9p per share at the discretion of the holder. In addition, he
Company has the right to enforce conversion of £100,000 of the CLN in the
event t42's share price exceeds 12p and the balance if the share price exceeds
15p.

 

Equity Subscription

The Company has raised £90,000 through the subscription by 12.64 Fund, a fund
managed by A-LABS Finance & Advisory Ltd, for 1,000,000 new Shares at 9p
per share, representing a market premium of over 40% as of the last market
close.

 

Admission

The new Shares will rank pari passu with the Company's existing ordinary
shares, and application will be made to the London Stock Exchange plc for the
admission of the 4,000,000 new Shares to trading on AIM. It is expected that
such admission will be effective and dealings will commence on or around 21
December 2022.

 

Total Voting Rights

Following admission of the Deposit Shares and the Shares pursuant to the
equity subscription  there will be 57,026,822 Shares in issue, each with one
voting right. The Company does not hold any Shares in treasury. This figure
may be used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Avi Hartmann, CEO of t42, commented: "We are pleased to have secured this
funding which will support the ongoing orders flow during this challenging era
in the Global environment. Our pipeline remains strong though mainly expected
to deliver sales during the first half of 2023 and beyond"

The information communicated in this announcement is deemed by the Company to
constitute inside information for the purposes of Article 7 of as stipulated
under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United
Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as
amended.

 

Contacts:

 

 t42 IoT Tracking Solutions PLC

 Michael Rosenberg, Chairman                                      07785 727595

 Avi Hartmann, CEO                                                +972 5477 35663

 Strand Hanson Limited (Nominated Adviser and Financial Adviser)  020 7409 3494

 James Harris/ Richard Johnson/ Robert Collins

 Peterhouse Capital Limited (Broker)                              020 7469 0930

 Lucy Williams/Charles Goodfellow/Eran Zucker

 Yellow Jersey PR (Financial PR)                                  020 3004 9512

 Tom Randell/Henry Wilkinson/Annabelle Wills                      t42@yellowjerseypr.com (mailto:t42@yellowjerseypr.com)

 

Notes to Editors

 

t42 IoT Tracking Solutions plc (AIM: TRAC), formerly Starcom Systems plc,
provides real-time tracking, analysis, monitoring, and security IoT solutions
for the global container and freight market and covers 55 countries, over 100
distributors, and 50 logistics and support partners.

 

t42's multi-sensor IoT tracking devices use a wide range of detection
capabilities with cloud-based analytics and alerts, with real-time data
transmission, analysis, and actionable insights. Its devices are used by
ports, cargo owners, shipping companies, freight forwarders, insurance
companies, customs authorities, homeland security, and police for end-to-end
global container tracking and digital transformation of shipments.

 

For more information on the Company, please visit: www.t42.co.uk/
(http://www.t42.co.uk/) .

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