Webis Holdings PLC on Monday announced it has agreed a further loan facility of $920,000 with Galloway Ltd to refinance a previous loan and support working capital requirements amid continued losses for the company.
The global gaming group said the new loan will support its wholly-owned subsidiary WatchandWager.com LLC which operates physical and online licences in California.
The company said an anticipated improvement in trading in the second half of the year did not happen after a ‘poor first six months’.
It added that weak trading was ‘exacerbated by unprecedented race meeting cancellations throughout the US due to weather disruption’. The company said it expected losses in the second half of the year to be similar to those in the first half.
The facility will also be used to refinance a previous loan from Galloway in April 2019, which had a principal value of $350,000 plus $20,000 of interest. Galloway is a 63% shareholder in Webis.
The new loan has a five-year term at 13% and will take the total indebtedness of the group to Galloway to about $2.9 million including interest.
Managing director of Webis Ed Comins said: ‘Webis is very pleased to receive further backing from our principal shareholder. Their continued support during a period of poor trading is vital for the company and the terms compare favourably with other potential forms of funding considered.’
Shares in Webis were down 15% at 0.51 pence per share in London on Monday afternoon.
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