TIDMGLOK

RNS Number : 0012N

Global Lock Safety (Intl) Grp CoLtd

24 September 2012

Global Lock Safety (International) Group Co., Limited

("Global Lock" or the "Company")

Loan facility and related party transaction

Global Lock, the provider of security solutions to retail stores and other organisations in P.R. China, announces that on 14 February 2012 the Company agreed terms on a loan from Moxiang Li, Chairman and Chief Executive Officer of Global Lock, under which he agreed to advance an unsecured loan to Global Lock (the "Loan") of approximately RMB 2,000,000 (approximately GBP196,000).

Since that time, a further RMB 12,051,090 (approximately GBP1,181,000) has been advanced to the Company such that the current outstanding balance under the Loan is RMB 14,051,090 (approximately GBP1,377,000) and this now exceeds 5% of the class tests as set out in schedule three to the AIM Rules. Mr Li has agreed to continue to advance funds to the Company on a monthly basis and the directors of Global Lock expect that this will continue for the foreseeable future at an average rate of RMB 2,000,000 per month (approximately GBP196,000). The Loan funds have been and will be used by Global Lock for general working capital purposes and, in particular, to pay Global Lock's employees.

The key terms of the Loan are as follows:

   (1)    it has no fixed term; 
   (2)    it is non-interest bearing; 
   (3)    it is repayable on demand; 
   (4)    it is unsecured; and 
   (5)    it is not convertible into new ordinary shares in Global Lock.

As Moxiang Li is a director of Global Lock, the size of the Loan (including the future advances under it) is now such that it constitutes a related party transaction that falls within the definition of Rule 13 of the AIM Rules for Companies. The directors of Global Lock, excluding Moxiang Li, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Loan (including the future advances to be made under it) are fair and reasonable insofar as the Company's shareholders are concerned.

Further Enquiries:

Global Lock Safety (International) Group

Moxiang LI, Chairman and Chief Executive Officer Tel: +86 755 86556800 (Direct)

     Robert Zhang- Director and Chief Investor Relations Officer    Tel. +86 755 86556705 (Direct)

e-mail: robertzh@globallock.com

Andrew Gee, Non-executive Director Tel: 0777 565 3564

Allenby Capital Limited Tel: 0203 328 5656

Nick Naylor

Alex Price

Nick Harriss

- Ends

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLLFVVATISFIF

Glbal Lck Grp (LSE:GLOK)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Glbal Lck Grp Charts.
Glbal Lck Grp (LSE:GLOK)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Glbal Lck Grp Charts.