YuuZoo

YuuZoo: The social e-commerce and payments company secured access to $30m in capital funds from GEM Global Yield Fund (GEM).

The agreement will allow YuuZoo to draw down the funds offered over three years by issuing shares to GEM at 10% discount to the prevailing closing price.

There is however, no obligation on its part to draw on the offered funds and it retains the ability to control the timing and maximum amount of any drawdown on condition that GEM does not hold more than a 19.9% stake of YuuZoo at any one time.

In addition, YuuZoo will issue 55m new warrants to GEM carrying an initial exercise price of $0.70 with the exercise prices reset to 110% of the share price (currently $0.142) after 12 and 24 months from 4 Sep. The warrants will have a validity of five years.

As part of the agreement, it will pay GEM’s associate, a one-off commitment fee of $450,000. The deal is also supported by a share lending agreement between YuuZoo’s chairman and CEO, Thomas Zilliacus and GEM at no cost during the period between YuuZoo making the drawdown request and the issue of shares to GEM.

YuuZoo intends to convene an EGM to seek approval after it obtains approval from SGX with regards to the listing and quotation of shares to be issued to GEM.

Overall, the agreement provides YuuZoo with an alternative funding option as it continues its expansion plans. Recently, it announced the acquisition of key assets in Camigo Media, a Chinese mobile game developer through the issue of shares. The assets include user data of over 26m users, 11 mobile games, and the Camigo brand.

YuuZoo is currently trading at 12.5x forward P/E.