LONDON (ShareCast) - (Sharecast News) - Toople said it was on the lookout for acquisitions after raising £300,000 in convertible debt, sending its shares down almost 20%.
The telecoms group for small businesses said it borrowed the money from private investors and existing shareholders at an interest rate of 10% a year. The loans are due for repayment in January 2023 and can be converted to equity at any time.

If the loans are converted lenders will receive equity worth 125% of the loan amount converted with a 10% discount of the average of the two lowest average prices in the preceding 20 business days. Lenders will also get warrants equal to 100% of the number of shares issued at the conversion price up until 28 March 2024.

Toople said the loans provide it with working capital to move towards profitability and that the board was exploring acquisition opportunities. Shares of Toople fell 19.3% to .023p at 11:32 GMT.

Andy Hollingworth, Toople's chief executive, said: "This non-dilutive funding is another positive step for the company and shows strong support from existing shareholders and debt providers, who share our vision of driving the business forward. We intend to capitalise on the opportunities that are presenting themselves as the SME market in the UK continues to reopen after the hiatus caused by the Covid-19 restrictions."

Toople said it would publish a trading update on 31 March to coincide with its annual general meeting.

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