Corgi ups funding

By Staff -- Playthings, 1/9/2008 7:27:00 AM

HONG KONG—Corgi International Ltd. this week completed approximately $39.3 million in debt and equity financing with several providers.

On Jan. 8, 2008, Corgi finalized arrangements for a three-year asset based credit facility with Burdale Financial Limited, a member of Bank of Ireland Group ,for a maximum credit availability of approximately $30 million.

Alongside the Burdale financing, the company's existing lenders, Barclays Bank, Ropart Asset Management Fund (RAM) and Gateway Trade Finance each agreed to extend the maturity of their existing credit facilities with the company. Gateway also agreed to provide up to $3.3 million of inventory financing for at least one year. In connection with the RAM extension, the Corgi granted RAM a warrant to purchase 200,000 American Depositary Shares with an exercise price at par value or $3.00 Hong Kong dollars (or approximately $0.38 per AD share).

Also on Jan. 8, Corgi closed a $2.2 million equity financing in a private placement of its ADS to existing investors for $1.00 per ADS for a total of 2.2 million ADS, of which $200,000 was in exchange of existing bridge indebtedness. The toy, gifts and collectibles maker and marketer agreed to register the ADS for resale with the SEC within 90 days.

In addition, pursuant to an exchange agreement dated Dec. 21, 2007, in a private placement, Corgi converted approximately $469,854 of existing bridge indebtedness into approximately 231,445 ADS at $2.03 per ADS, the closing NASDAQ per share price for our ADSs on December 20, 2007.

“We are extremely pleased to have completed these financings, which we believe positions us well to execute our growth plans for the future and leverage the combined channels and assets of our merged companies. Our investors and financial institutions have been responsive in supporting the Company at this time,” said Michael Cookson, Corgi International’s CEO.

Corgi's current iteration was formed in December 2006 through the merger of Master Replicas, Corgi Classics, and Cards Inc. In addition to its Hong Kong headquarters it has U.S. operations in Walnut Creek, Calif., and Chicago, and British offices in Watford and Leicester.

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