Vislink PLC Update on Proposed Disposal (1900U)
16 January 2017 - 6:00PM
UK Regulatory
TIDMVLK
RNS Number : 1900U
Vislink PLC
16 January 2017
Vislink plc
("Vislink", the "Company" or the "Group")
Update on Proposed Disposal
Further to the Company's announcement on 9 January 2017,
announcing shareholder approval for the Proposed Disposal and that
certain completion conditions remained outstanding, Vislink
announces that it has agreed to revise the specific terms of the
transaction.
As those completion conditions were not satisfied, the parties
have agreed that certain terms of the Proposed Disposal shall be
amended subject to shareholder approval. The headline consideration
will remain at US$16million, but will now be satisfied by an amount
of initial consideration and an amount of deferred
consideration.
The initial consideration amounts to US$6.5million of cash. The
Company confirms that the Company's lawyers have been advised that
funds are in transit, and confirmation of receipt is expected to be
announced shortly. These funds are only refundable to xG in the
event that the Vislink shareholder resolution to approve the
revised terms of the Proposed Disposal is not passed.
On completion, xG will issue loan notes for a principal amount
of US$9.5million. These loan notes will provide for redemption
within 45 days of completion and will be secured over the business
and assets being sold. The terms of the loan notes and security are
to be agreed in advance of the general meeting referred to
below.
It has also been agreed that the Sellers will retain the right
to any sums received in future in respect of an outstanding debt
subject to a maximum sum of US$2 million.
Completion of the Proposed Disposal is now due to take place on
the day shareholder approval of the revised terms of the Proposed
Disposal is obtained.
The revised terms of the Proposed Disposal are conditional on
approval by shareholders of the Company under Rule 15 of the AIM
Rules for Companies. Consequently, a circular containing a notice
of general meeting will be posted to shareholders in due course,
pending confirmation of receipt of initial consideration funds by
the Company's lawyers.
All capitalised terms in this announcement are as defined in the
Circular which is available on the Company's website
www.vislinkplc.com.
For further information please contact:
Robin Howe, Senior Independent +44 (0) 14 88
Non-Executive Director 68 55 00
Vislink plc
Shaun Dobson / James White +44 (0) 20 74
N+1 Singer (Nomad and Broker) 96 30 00
Charlie Jack / Bertie Berger +44 (0) 20 77
Hudson Sandler 96 41 33
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUAWGUPMGRA
(END) Dow Jones Newswires
January 16, 2017 02:00 ET (07:00 GMT)
Vislink (LSE:VLK)
Historical Stock Chart
From Apr 2024 to May 2024
Vislink (LSE:VLK)
Historical Stock Chart
From May 2023 to May 2024