RNS Number : 4277X
  Axismobile PLC
  24 June 2008
   

    
    

    AxisMobile PLC
    ("AxisMobile" or "the Company")

    US $0.5 million follow-on loan facility

    AxisMobile PLC (AIM: AXIS), the hi-tech specialist in consumer mobile email, today announces that its current debt holders (the
"Lenders") have indicated their willingness to provide the Company with additional debt finance.  The sum of $500,000 (the "Loan") has been
made available, of which $370,000 has already been drawn down. The Company explored a number of potential funding options before concluding
that the Loan represents the best option available to the Company to satisfy its immediate financing requirements. The respective
participations of the Lenders in the Loan are as follows: 

    Plenus Venture Lending: $150,000
    Pitango Venture Capital: $150,000
    SVM Israel: $150,000
    Concord Ventures: $50,000.  

    This current financing is a follow-on loan facility to earlier loans provided by these debt holders and this financing is provided on
the same terms as the previous loans. The Loan is repayable over 24 months and interest is charged at LIBOR plus 5.5%.  The terms of the
Compromise Agreement described below will also apply. 

    As stated in the announcement of 5 June 2008, the Company remains in ongoing discussions with potential buyers and will update the
market in due course.  The current financing detailed above has been provided by the Lenders to enable the Company to fully explore these
strategic options.

    As part of the arrangements with the Lenders referred to above, the Company has entered into an agreement with the Lenders dated 15 June
2008 (the "Compromise Agreement"). The Compromise Agreement is conditional, inter alia, upon a final agreement for the acquisition of the
entire issued share capital of the Company or substantially all of the Company's assets (a "Sale") being entered into within 90 days of the
date of the Compromise Agreement. The Compromise Agreement is also conditional upon a definitive agreement relating to the Sale being
approved by each of the Lenders. Under the terms of the Compromise Agreement, each of the Lenders has agreed, subject to the satisfaction or
waiver by the Lenders of each of the conditions to the Compromise Agreement, that all sums owed to the Lenders (including the sums advanced
pursuant to the Loan) and all warrants granted to the Lenders, shall be cancelled. In consideration of such cancellation, the Lenders will
receive a proportion of the consideration received in relation to a Sale. The proportion of the consideration to be apportioned to the Lenders will be equal to the proportion of ordinary
shares of the Company that the Lenders would receive if the sums owed to them by the Company were converted into shares in the Company on
the basis of one share for every $0.1187 owed as at the date of the Compromise Agreement and one share for every $0.041545 of indebtedness
(including the Loan described above) incurred between the date of the Compromise Agreement and completion of the Sale.


    As part of the loan facility is being provided by existing shareholders of the Company, Pitango Venture Capital and Concord Ventures,
the Loan is classified as a related party transaction under the AIM Rules for Companies. The directors, having consulted with the Company's
nominated adviser, Canaccord Adams Limited, consider the terms of the Loan and the Compromise Agreement are fair and reasonable insofar as
shareholders are concerned.

    All dollar references in this announcement are to US dollars.


    Sharon David, CEO of AxisMobile, commented:
    The additional funds provided by the follow-on loans from our current debt holder will facilitate AxisMobile's continuous expansion of
its customer base and enable the Company to fully explore the discussions with strategic buyers. 

    Enquiries to:

 Uri Darvish                  Tel: + 972 3 768 5555
 AxisMobile                   www.axismobile.com

 Josh Royston                 Tel:  +44 (0) 20 7936 9606
 Threadneedle Communications

 Mark Williams/Andrew Chubb   Tel: +44 (0) 207 050 6500
 Canaccord Adams Limited




    Notes to Editors

    About AxisMobile

    * AxisMobile was founded during early 2000. It is a leader in the emerging market of consumer mobile email which allows consumers to
access email via mobile telephone handsets.

    * AxisMobile's objective is to provide software that drives the mass market adoption of mobile email and related products by making
multimedia information portable, ubiquitous and easy to access on subscribers' existing mobile handsets at an attractive cost. AxisMobile's
email platform provides a 'one-stop-shop' for consumer mobile as it supports Web, WAP, IMAP4, MMS, SMS and J2ME interfaces. Such interfaces
cover most methods of transmitting mobile data communications. AxisMobile's platform means that mobile operators no longer need to integrate
platforms from different vendors. This reduces costs. AxisMobile aims to leverage customer relationships by offering additional products and
services based on its technology platform, hence producing cross-sales and increasing the value to customers and to its shareholders.

    * Consumer mobile email represents a huge growth opportunity for mobile operators and vendors. The success of mobile communications has
become a worldwide phenomenon with approximately 1.7 billion subscribers globally. In 2005, Forrester research estimated that the number of
Western European consumer mobile email users will increase from 12.3 million in 2005 to 62.7 million by 2008. During the same period,
revenues from consumer mobile mail will grow from EUR120 million per year to EUR1.15 billion per year in Western Europe alone. In the US,
Forrester estimates that the number of consumer mobile email users will increase from 12.1 million in 2005 to 38 million in 2008 and that
revenues will soar from $13 million per year in 2005 to $406 million in 2008.


    * The loan from Plenus was through Plenus II L.P. and Plenus II (D.C.M.) L.P.

    * The loan from SVM was through SVM Israel Opportunity Fund II L.P. and SMV Israel Parallel Fund, L.P

    * The loan from Pitango Venture Capital was through Pitango Venture Capital Fund III (Israeli Sub) L.P., Pitango Venture Capital Fund
III (Israeli Sub) Non-Q L.P., Pitango Venture Capital Fund III (Israeli investors) L.P., Pitango Principals Fund III (Israel) LP, Pitango
Venture Capital Fund III Trusts 2000 Ltd. and Pitango Parallel Investors Fund III (Israel) LP

    * The loan from Concord Ventures was through Concord Venture II (Cayman) L.P., Concord Venture II (Israel) L.P., Concord Venture
Advisors II-A (Israel) L.P. and Concord Venture Advisors II (Cayman) L.P. 


    * Further information on AxisMobile is available from the AxisMobile website: www.axismobile.com 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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