GC-Global Capital Corp.

GC-Global Capital Corp.

February 07, 2011 17:03 ET

GC-Global Capital Corp. and Synchronica plc Enter Into $1,500,000 Loan Agreement

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2011) - GC-Global Capital Corp. (TSX VENTURE:GDE.A) ("Global Capital") and Synchronica plc (TSX VENTURE:CTS) ("Synchronica") are pleased to announce the completion of a secured loan (the "Loan") in the principal amount of $1,500,000. The net proceeds of the Loan shall be used in conjunction with Synchronica's recently announced acquisition of the instant messaging and social networking business of Neustar NGM Services Ltd. and associated costs.

"Synchronica has a portfolio of mobile messaging services as well as a growing customer base of international telecom carriers. We are pleased to be able to provide this financing and are looking forward to working with them in 2011." said Global Capital's C.E.O., Jason Ewart. 

The Loan matures December 30, 2011 and bears interest at 12 percent per annum, compounded and payable monthly. As additional consideration for providing the Loan, Global Capital and its syndicate of co-lenders were issued 450,000 common shares of Synchronica and paid a C$15,000 structuring fee. The common shares issued pursuant to the Loan will be subject to resale restrictions for a period of four months from the closing date under applicable securities legislation. The issued shares represent a 0.46 percent dilution of Synchronica's outstanding shares.

Global Capital acted as lead lender in the transaction providing $800,000 of the Loan along with a syndicate of lenders for the remaining $700,000. The syndicate of lenders includes a related party, the GC-Global Capital Lending Partners Limited Partnership fund for $200,000.

About Global Capital

Global Capital is a merchant bank, which provides bridge loan services, to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. 

Cautionary Statements

The foregoing information may contain forward-looking statements relating to the future performance of Synchronica plc. Forward-looking statements, specifically those concerning future performance or results, are subject to certain risks and uncertainties, and actual results may differ materially from Synchronica's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the public filings and announcements made by Synchronica, including those made with AIM, a market of the London Stock Exchange, with the TSX Venture Exchange or with securities regulators. Synchronica does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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