<article>Singapore-based social e-commerce and payments company <a style="color: #000080;" href="dealstreetasia.com/tag/yuuzoo" target="_blank">YuuZoo</a> has secured a commitment of S$30 million from New York-based <a style="color: #000080;" href="http://www.gemny.com" target="_blank">GEM Global Yield Fund</a>.</article>

Singapore-based social e-commerce and payments company <a style="color: #000080;" href="dealstreetasia.com/tag/yuuzoo" target="_blank">YuuZoo</a> has secured a commitment of S$30 million from New York-based <a style="color: #000080;" href="http://www.gemny.com" target="_blank">GEM Global Yield Fund</a>.
YuuZoo signed an agreement with the private alternative investment group, which agreed to provide the company with a $30 million facility over the next three years. The facility will be in the form of a capital commitment, allowing YuuZoo to draw-down funds during the three-year term of agreement by issuing ordinary shares to GEM Global (at a price per share representing a 10 per cent discount on the closing price of YuuZoo&#8217;s shares).
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YuuZoo has no obligation to draw on the funds on offer, and will control the timing and maximum amount of any draw-down under this facility, subject to a requirement that GEM Global holding of YuuZoo shares do not exceed 19.9 per cent of YuuZoo shares on issue.
As part of this arrangement, YuuZoo has also agreed to issue 55 million warrants to GEM Global, each carrying the right to subscribe for one new ordinary share in the Company.
The warrants will be issued within 60 days of YuuZoo obtaining shareholder approval for the terms of the credit facility. The warrants will be exercisable for a period of five years from the issue date, at an initial exercise price of S$0.70 each. These will reset to 110 per cent of the share price after 12 and 24 months from agreement being finalised.
As part of the agreement, YuuZoo will also pay GEM Investments America LLC, an associated company of GEM Global, a commitment fee of S$450,000. This amounts to 1.5 per cent of the total value of the capital commitment and is supported by a share lending arrangement where shares controlled by YuuZoo’s executive chairman and CEO, <a style="color: #000080;" href="http://dealstreetasia.com/tag/thomas-zilliacus" target="_blank">Thomas Zilliacus</a> are lent to GEM Global at no cost to YuuZoo.
This is during the period between YuuZoo making the drawdown request and the issue of shares under the agreement. However, the agreement is subject to both regulatory approval and shareholder approval.
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YuuZoo has secured a $30 million capital commitment from New York-based GEM Global.

E-commerce and payments firm YuuZoo secures $30m funding from GEM Global

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E-commerce and payments firm YuuZoo secures $30m funding from GEM Global

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