LightwaveRF PLC Additional financing and trading update (5059M)
14 October 2016 - 5:00PM
UK Regulatory
TIDMLWRF
RNS Number : 5059M
LightwaveRF PLC
14 October 2016
14 October 2016
LightwaveRF plc
(AIM: LWRF)
Additional financing and trading update
LightwaveRF plc ("LightwaveRF" or the "Company") is the Internet
of Things ("IOT") provider of the LightwaveRF platform and
connected devices enabling domestic and commercial users to
remotely monitor and control light, heat, power and security by
smartphone, tablet or PC. The Company is pleased to announce that
it has entered into an agreement with its principal shareholder,
Committed Capital Financial Services Limited ("Committed Capital")
for a loan of GBP150,000.
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
The loan is secured against anticipated R&D tax credits and
carries a coupon of 1.25% per month. Repayment is at the earlier of
12 months from the first drawdown or receipt of the tax refund in
relation to the year ended 30 September 2016. There is also an
arrangement fee of GBP6,000. The loan is expected to be repaid
within six months.
As Committed Capital holds more than 10 per cent. of the issued
share capital of the Company, this loan transaction is considered a
related party transaction in accordance with Rule 13 of the AIM
Rules for Companies. The independent directors, being all Directors
other than Steve Harris, having consulted with WH Ireland Limited,
the Company's nominated adviser, consider that the terms of the
loan are fair and reasonable insofar as the Company's shareholders
are concerned.
This new short term funding will allow a quicker conclusion to
the development of a new and further enhanced LightwaveRF link.
This will further reinforce the open platform approach and allow
the full integration with another leading device manufacturer for
which work was originally announced early in 2015. This is in
addition to that already announced with the Nest and IFTTT IoT
platforms.
The out-turn for the second half of the year ended 30 September
is expected to be in line with the first half results. As
previously announced the Company has been establishing a new
distribution base moving from one to three UK distributors. This is
a significant change in the Company's distribution capability and
reach. This has caused some disruption to order flow during the
second half but all three distributors are now placing repeat
orders and reporting much improved market traction.
ERA Home Security Ltd, part of Tyman plc, the Company's new
retail distribution partner, has added Screwfix to the retailers
that now carry the LightwaveRF offering.
The Company is also pleased to report the recent addition of a
fourth distributor, Icon Heating, a specialist distributor of high
efficiency boilers and heating control systems. This partnership
has led to the LightwaveRF product range now becoming available at
around 200 Graham The Plumbers' Merchant branches.
The current order book now stands at around GBP800,000. The
Company is now well placed with both its technology and
distribution channels to make further progress in the new financial
year.
For further information:
LightwaveRF plc www.lightwaveRF.com
Mike Lord, CEO +44 (0) 121
Kevin Edwards, CFO 250 3625
WH Ireland Limited www.whirelandplc.com
Mike Coe/Ed Allsopp (Corporate +44 (0) 117
Finance) 945 3470
Jasper Berry (Institutional +44 (0) 20 7220
Sales) 1666
This information is provided by RNS
The company news service from the London Stock Exchange
END
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