Infoserve announces new loan and debt into equity deal
INFOSERVE, the online local search specialist, revealed today that it has entered into conditional agreements with one of its major shareholders relating to the conversion of £2m in existing loans into shares.
The proposed deal will also see non-executive director David Hood offer a further loan facility of up to £800,000.
If approved, Mr Hood’s stake in the company will increase from 46.86% to 82.84%.
It has been agreed to grant a waiver of the obligation that would otherwise arise for Mr Hood to make an offer to acquire all of the shares not already owned by him subject to the approval of independent shareholders.
Steve Barnes, chief executive of Leeds-based Infoserve and an ex-Pace colleague of Mr Hood, said: “Once again, David Hood has shown his commitment to Infoserve and his new support for us gives us the opportunity to develop in key growth areas for the future.”
In December, Infoserve said it was breaking even on a monthly basis and was looking to recruit up to 50 new sales people on finalising a funding package with Mr Hood.
Infoserve provides UK businesses, mainly SMEs, with online marketing products through a partnership with Yahoo! and Google AdWords campaigns that allow them to be found when consumers are searching on the internet for goods and services.
