SerVision plc Amendment to YA Facility (2141O)
17 Août 2017 - 8:00AM
UK Regulatory
TIDMSEV
RNS Number : 2141O
SerVision plc
17 August 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
17 August 2017
SerVision plc
("SerVision" or "the Company")
Amendment to YA Facility and additional draw-down of
$541,000
SerVision (AIM:SEV), the AIM quoted developer and manufacturer
of digital security systems, announces that, on 16 August 2017, it
entered into an agreement to revise the repayment terms with YA II
PN, Ltd ("YA") for the current loan between the two parties and to
provide an additional loan of $541,000 under the existing facility
(the "YA Loan"). This agreement follows the announcement on 30 June
2017 detailing that the Company was seeking to renegotiate terms
with YA in order to extend the repayment deadline and to provide
additional working capital to help the Company invest in a number
of tenders.
As at 15 August 2017, the balance due to YA, including accrued
interest, was approximately $406,000. Under the revised terms, the
Company is borrowing a further $541,000 under the existing facility
with YA, with the repayment date of the YA Loan being extended to 1
August 2018 and six bi-monthly payments averaging approximately
$165,000 commencing on 1 October 2017 to cover the principal and
interest repayments on the YA Loan. All other terms of the YA Loan
remain unchanged including the interest rate which remains at 12
per cent. per annum. YA is also receiving fees of approximately
$40,000 in connection with the restructuring of the existing loan
and the provision of the additional loan.
In addition the Company has amended the terms of the Standby
Equity Distribution Agreement ("SEDA") whereby the commitment
period has been extended to 11 November 2019. To date the Company
has not drawn on the SEDA and it does not intend to do so at the
current time.
Under the agreement entered into on 16 August 2017 the Company
has also varied the terms of the existing warrants held by YA. YA
will continue to hold 1,210,653 warrants to subscribe for new
ordinary shares in the Company, representing 0.9 per cent of the
Company's issued share capital (the "YA Warrants"). The exercise
price of the YA Warrants has however been amended to 5 pence
(previously 10.74 pence) and the expiry date of the warrants has
been extended to 1 August 2020 (previously 13 August 2018).
As previously announced, sales for the first half of 2017 were
behind the Company's internal expectations albeit that they are
ahead of the comparative interim period in 2016. The pipeline
remains strong and the board remains optimistic that the Company is
moving in the right direction. However, the Company has not
achieved breakeven and this loan is necessary to bolster the
Company's working capital and enable it to continue competing for
new tenders.
-ends-
For further information:
SerVision plc +972 2535 0000
Gidon Tahan, Chairman and CEO
Allenby Capital Limited +44 (0)20 3328 5656
Nick Athanas / Richard Short
Leander PR (Financial PR)
Christian Taylor-Wilkinson +44 (0)7795 168 157
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
END
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