Mobile operator My Beat has entered into a binding financing agreement with Loft Structured Opportunities Fund I for a flexible financing solution of up to SEK 5.65 million, according to a press release.The financing runs for a maximum of 36 months and includes a convertible loan in up to four tranches, with the first amounting to SEK 1.9 million. The arrangement also includes a directed issue of no more than 20 million warrants and 4.5 million security shares to the investor.The company states that outstanding convertible loans are to be amortized continuously through set-off against proceeds from the exercise of warrants. The board also intends to propose to the annual general meeting that share capital be reduced to reach a quota value of SEK 0.15 and to amend the articles of association’s limits for share capital and the number of shares. According to the company, the financing solution may entail significant dilution for existing shareholders."The board is aware that the financing solution may entail significant dilution for existing shareholders, particularly in the event of full exercise of the warrants and any conversion of the convertible loan. These effects have been weighed against the company's need for financing and the board's assessment that alternative financing solutions on acceptable terms are not available to a corresponding extent, with corresponding flexibility and within the timeframe the company deems necessary," it says.