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SerVision plc  -  SEV   

Shareholder loan and related party transaction

Released 16:00 24-Feb-2016

RNS Number : 0548Q
SerVision plc
24 February 2016
 

24 February 2016

 

SerVision plc

("SerVision" or the "Company")

 

Shareholder loan and related party transaction

 

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital video security systems, announces that, on 23 February 2016, the Company entered into an agreement (the "Loan Agreement") with Gabriel Sassoon, an existing shareholder in the Company, to provide the Company with an unsecured working capital loan facility of US$1.0 million (equivalent to approximately £712,500 at the current prevailing exchange rate*) (the "Loan"). The Loan will be used to provide additional working capital facilities for the Company and supplement the Company's existing cash resources.

 

The key terms of the Loan pursuant to the Loan agreement are as follows:

 

·     Loan amount: US$1,000,000

·     The Loan carries an annual interest rate of 6%

·     The Loan is repayable on 15 February 2019 (the "Repayment Date") or earlier at the sole discretion of SerVision

·     The Company has the ability to repay the Loan on a monthly basis throughout the term of the Loan

·     The Loan is unsecured

 

To the extent that the Company does not repay the outstanding amounts on the Loan as at the Repayment Date then the Company will be obliged to issue new ordinary shares in the Company (the "Conversion Shares") to Gabriel Sassoon to satisfy the outstanding amounts due to him under the Loan Agreement. In such circumstances the issue price of the Conversion Shares would be calculated on the basis of the average closing mid-market price of the Company's ordinary shares for the calendar month prior to the Repayment Date, subject to the issue price of the Conversion Shares being no less than 3.5 pence per share (a 40 per cent. premium to the closing mid-market price of the Company's shares as at 23 February 2016).

 

Gabriel Sassoon is interested in 18,992,956 ordinary shares of 1 pence each in the Company, representing 14.98 per cent. of the current issued share capital of SerVision. Given that Gabriel Sassoon is a substantial shareholder in the Company, the provision of the Loan is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Directors consider, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.

 

-ends-

 

SerVision plc

+972 2535 0000

Gidon Tahan, Chairman and CEO

 


Allenby Capital Limited (Nominated Adviser and Joint Broker)

+44 (0)20 3328 5656

Nick Athanas / James Reeve 


 

Beaufort Securities Limited (Joint Broker)


Jon Levinson / Elliot Hance

+44 (0)20 7382 8300

 

Cadogan Leander (Financial PR)


Christian Taylor-Wilkinson

+44 (0)7795 168 157

 

*Based on exchange rate of 1GBP = 1.40322USD as at 23 February 2016

 

Notes to Editors

 

SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network.

 

                                           


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Shareholder loan and related party transaction - RNS