GON Galleon Hldgs

TIDMGON

RNS Number : 7963H

Galleon Holdings PLC

03 June 2011

 
 Date:              03 June 2011 
 On behalf of:      Galleon Holdings plc ('Galleon', 'the Company' or 
                     'the Group') 
 Embargoed until:   0700hrs 
 

Galleon Holdings PLC

-- Croco - Loan Facility & Update

Galleon Holdings plc (AIM: GON), an AIM listed entertainment media company, is delighted to announce that it has agreed loan facilities with Imagination Holdings Limited (Imagination) for up to GBP2m to provide funding for recently secured and anticipated orders for its Product IP Division, Croco Worldwide ('Croco'), in a period of growth. Croco is seeing an increase in activity both from new and existing customers and the loan facility will allow the business to fund this growth. The facilities are for a period of nine months from 2(nd) June 2011 with the first GBP1m repayable within the first 5 months. An interest rate of 2% calculated on the outstanding balance each month on a pro rata basis is payable monthly. An arrangement fee of GBP50,000 is payable to Imagination for the facilities which are secured against Croco's receivables. Imagination, a shareholder of Galleon who has a 12.8% interest in the issued share capital of the Company, is a charitable trust registered in the Isle of Man. Whilst David Wong and Pritesh Desai are Directors of Imagination they do not have any beneficial interest in the trust. The independent Directors to the transaction consider, having consulted with Cenkos Securities plc as nominated advisor, that the terms of the loan agreements are fair and reasonable insofar as Galleon's shareholders are concerned.

Galleon has gone through a period of restructuring during the year, reducing its overhead and focussing on revenue generating activities and growth opportunities across the Group. The Company has invested more than GBP1m in its Chinese online operations and continues marketing the site to new users. The monthly revenue from its online operations are currently GBP450,000 per month and the Company has decided to accelerate this growth in preparation for the launch of a second exclusive game later this year, through increased marketing spend. We anticipate that we will have spent in excess of GBP2M on marketing in China in 2011. Whilst this will impact on profitability this year we believe it will provide a strong platform for growth in the future. In light of this Galleon does not expect the Group will make a profit this financial year but the Board expect to be in a position by the end of the year to demonstrate significant monthly profits, in particular from its Digital Operations in China.

- Ends -

Enquiries:

 
 Galleon Holdings plc                        www.galleonplc.com 
 Hayden Eastwood, Chief Financial Officer    Tel: 020 8987 0011 
 
 Cenkos Securities (Nominated Adviser 
  & Broker) 
 Ken Fleming                                 Tel: 0131 220 6939 
  Beth McKiernan                             Tel: 020 7397 8900 
 
 
 
 
 

Notes to Editors:

ABOUT GALLEON HOLDINGS

Galleon Holdings plc is primarily a publisher of digital content in China across both online and mobile platforms. It also has a Product IP Division that provides innovative marketing devices for fast moving consumable goods and an Entertainment Division that develops multi-platform branded formats designed to establish a direct, interactive relationship with the viewer.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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