UniVision Engineering Ltd Loan Agreement (6180S)
12 March 2019 - 10:35PM
UK Regulatory
TIDMUVEL
RNS Number : 6180S
UniVision Engineering Ltd
12 March 2019
RNS ANNOUNCEMENT: The information communicated in this
announcement contains inside information for the purposes of
Article 7 of Regulation 596/2014.
For immediate release: 12 March 2019
UniVision Engineering Limited
("UniVision", the "Company" or the "Group")
Loan Agreement
UniVision (AIM: UVEL), the Hong Kong based group whose principal
activities are the supply, design, installation and maintenance of
closed-circuit television (CCTV) and surveillance systems, and the
sale of security related products, announces that it has entered
into a loan agreement with UniVision Holdings Limited to borrow HKD
3 million ("Loan Agreement").
Background
In the Chairman's Statement contained within the 2018 Annual
Report (and in the last Interim Results, released on 7 December
2018), the Company commented that, as a result of the significant
increase in work from the MTRC contract, the Group had been
temporarily suspended from tendering for additional new government
contracts by the Hong Kong Government Works Branch under the
management of Electrical and Mechanical Services Department
("EMSD"). As we have announced previously, the effect of this
temporary suspension has been insignificant, given the Group's
current workload, with MTRC in particular.
However, the effect of entering into this Loan Agreement is to
provide sufficient asset backing for the Group, to allow EMSD to
lift this temporary suspension and allow the Group, once again, to
be able to tender for new government contracts offered by the Hong
Kong Government Works Branch.
For the avoidance of doubt, this temporary suspension did not
relate to any work that the Group continues to undertake on the
replacement works of the Closed-Circuit Television (CCTV) systems
for numerous railway lines of MTRC in Hong Kong.
Terms of the Loan Agreement
The Company has entered into an HKD 3 million, interest free,
loan with UniVision Holdings Limited. UniVision Holdings Limited
owns 47.9% of the issued share capital of the Company and is wholly
owned by Stephen Koo. Including a previous loan of HKD1.2 million,
made in year 2017, the total amount owed to UniVision Holding
Limited is now HKD 4.2 million. It is a condition of EMSD that the
HKD 3 million loan announced today may not be reduced or repaid to
the lender without EMSD's prior permission.
Stephen Koo, Executive Chairman, commented:
"I am delighted that this loan to the Company has enabled it to
resume tendering for new work from the Hong Kong Government Works
Branch as it has been able to do in the past."
For further information visit www.uvel.com or contact:
UniVision Engineering Limited Tel: +852 2389 3256
Stephen Koo, Chairman www.uvel.com
Chun Pan Wong, Chief Executive Officer
Danny Kwok Fai Yip, Finance Director
Nicholas Lyth, Non-Executive Director Tel: +44 (0)7769 906686
SPARK Advisory Partners Limited Tel: +44 (0)20 3368 3551
(Nominated Adviser)
Mark Brady / Neil Baldwin www.sparkadvisorypartners.com
SI Capital Limited Tel: +44 (0)1483 413500
(Broker) www.sicapital.co.uk
Nick Emerson
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END
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