Publicly listed Premier Entertainment Productions Inc. (PEP) is lending P40 million to Digiwave Solutions Inc. (DWI) to fund the Internet game software developer?s operations and expansion.

PEP, which is shifting from filmmaking to software development and online gaming, will lend the money at an interest rate of 10 percent per year. It is payable one year after receipt of funds.

A copy of the loan agreement signed by PEP president Dong Hun Lee and DWI president Justin Rojas showed the loan would be secured by postdated checks and a chattel mortgage on certain assets of DWI.

The agreement also carries a provision that if PEP had not acquired DWI by the time the loan became payable, the borrower must pay the P40 million plus interest within 15 days from receipt of a written demand from PEP.

The lender is currently in the process of finalizing its acquisition of DWI as a wholly owned subsidiary. Riza T. Olchondra