OxPay Financial (SGX:TVV) entered into a convertible loan agreement with Oxley Capital Management for a principal amount of up to SG$2.5 million, according to a filing with the Singapore Exchange on Thursday.

The lender is a private company whose sole shareholder is the non-independent chairman and controlling shareholder of the company.

Under the agreement, the lender will be allotted 35,410,015 shares in the company.

The loan, which will be used exclusively for general working capital needs, will bear an interest rate of 6.9% per annum.

Shares of the financial services company fell nearly 12% in recent trading.