SerVision plc Short Term Loan (1668R)
07 December 2016 - 6:00PM
UK Regulatory
TIDMSEV
RNS Number : 1668R
SerVision plc
07 December 2016
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR").
7 December 2016
SerVision plc
("SerVision" or the "Company")
Short term loan
SerVision (AIM: SEV), the AIM quoted developer and manufacturer
of digital video security, announced in its interims results for
the 6 months ended 31 March 2016 that the Directors were cautiously
optimistic of an improved result for the year when compared to
2015. This continues to be the situation.
Notwithstanding this, the current cash position of the Company
remains tight. The Directors are in discussions with a number of
parties regarding long term future funding but, in the meantime,
have decided that it would be prudent to secure short term funding
for the Company. On 5 December 2016, a facility letter was entered
into with CSS Alpha (BVI) Ltd (the "Lender") to borrow $215,000 of
unsecured short term financing at an interest rate of 1% per month,
repayable in instalments between January and May 2017. The
short-term loan is subject to a $15,000 arrangement fee, payable to
the Lender on the draw down of the loan by the Company. The loan
has been drawn down in full.
Gidon Tahan, Chairman and CEO of SerVision, is providing a
personal guarantee to the Lender covering the amount of the loan,
in the event that the Company defaults on its repayments. Mr Tahan
is receiving no payment, nor any other benefit, for providing this
guarantee. The provision of the guarantee by Mr Tahan is deemed to
constitute a related party transaction under the AIM Rules. The
directors of the Company (with the exception or Mr Tahan), having
consulted with the Company's nominated adviser, Allenby Capital
Limited, consider the terms of the guarantee to be fair and
reasonable insofar as the Company's shareholders are concerned.
-ends-
For further information:
SerVision plc +972 2535 0000
Gidon Tahan, Chairman and CEO
Allenby Capital Limited (Nominated +44 (0)20 3328
Adviser and Joint Broker) 5656
Nick Athanas / James Reeve
Beaufort Securities Limited (Joint
Broker)
+44 (0)20 7382
Elliot Hance 8300
Cadogan Leander (Financial PR)
+44 (0)7795 168
Christian Taylor-Wilkinson 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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