€2 Million Bonds Set To Be Issued By This Local Business & IT Company'

€2,000,000, 5.25% Unsecured 2027 Bonds Issued, will you be investing?

Screen Shot 2017 07 13 At 08 24 08

If you haven't seen or heard of Klikk then you're probably new to Malta. 

They're a local company that specialise in business services and IT. They also sell computer products and electronic goods, offer be-spoke software solutions and a whole lot more. Basically they're your one-stop-shop for all IT needs.

Sounds good right? The big news is that they're now issuing €2 million, 5.25% unsecured ten-year bonds of a nominal value of €100 per bond at par. 

You have no idea what that means, do you?

To put it in simple terms – Klikk (through Klikk Finance plc) is the borrower and the public are the lenders, and here's how the issuing goes – step by step.

  • Klikk issues its bonds, and invites the public to subscribe in such bonds.
  • They also issue what is referred to as a Company Admission Document which explains what the public (we) are potentially investing in.
  • The public then buy the bonds at €100 per bond, subject to a minimum subscription of €2,000 per individual bondholder.
  • Klikk uses the proceeds received from the bond issue in accordance with the “Use of Proceeds” set out in the Company Admission Document.   
  • Throughout the term of the bonds – i.e. before the bonds are   redeemed on 31 July 2027  – bond holders will receive interest on their bonds at 5.25% per annum.
  • Once the bonds have matured, Klikk pays back the public the full amount they originally invested, plus any accrued interest. Plus since the Bonds shall be admitted to Prospects, a market regulated as a multilateral trading facility and operated by the Malta Stock Exchange. The Bonds can also be traded (sold to third party) on Prospects.

Simples.

Here's that document we told you about...

You know, the one which explains what Klikk will be doing with the money invested. To get a hold of the details you'll just need to refer to the Company Admission Document dated 3 July 2017. If you want a printed copy, or an application form, these are available during office hours from Financial Planning Services Limited. Address? 4, Marina Court, Giuseppe Cali Street, Ta’ Xbiex. We recommend you do this fast as applications close on the 21 July 2017. 

But before you get into the financial nitty gritty, here's a little more about Klikk.

Klikk have been operating since 1998 – so they're pretty much local IT veterans. The strength of their setup is that they're IT people who also happen to be business people. Their personnel have genuine commercial understanding and extensive experience in using technology to improve business performance. Which, is a pretty good thing to have.

Unnamed

Aside from this expertise, Klikk have retail outlets in Birkirkara and Zejtun (tal-Barrani) – and they're amongst the last purely IT shops left on the island. Their main product categories are Apple, laptops, smartphone & tablets, televisions (Philips, Samsung, Toshiba, Sharp & Finlux) – so anything electronic you can think of. Customers may acquire the products and/or services either through an outright cash sale or on credit as secured by bills of exchange. 

Now back to investing in Klikk Finance plc.

Malta has seen its fair share of Bond issues, but what’s really cool about this 5.25% Unsecured 2027 Bonds Issue is that it is being admitted to Prospects, a market regulated as a multilateral trading facility and operated by the Malta Stock Exchange designed specifically to make it easier for Small and Medium Sized companies to raise finance. However Prospects may be less liquid than a regulated market and a bondholder may find it more difficult to identify willing buyers for their bonds, should bondholders decide to trade their bonds on Prospects. 

Want to know more?

Grant Thornton are acting as the corporate advisor for Klikk Finance plc, who are leading specialists in helping local SMEs list on Prospects. Financial Planning Services Limited are acting as placement agent, manager and registrar.

For any questions, or to invest, just call Financial Planning Services Limited today on +356 2134 4244, or send an email to klikkfinance@klikk.com.mt.

Just remember that as with any bonds issue, the value of investments can increase of decrease and past performance is not necessarily indicative of future performance. 
Prospective investors are urged to consult an independent authorised financial intermediary for advice prior to investing in the bonds and to read and understand the respective company admission document.

Happy investing people!

Comments