7 Dec 2016 07:00
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.
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For further information:
SerVision plc | +972 2535 0000 |
Gidon Tahan, Chairman and CEO | |
Allenby Capital Limited (Nominated Adviser and Joint Broker) | +44 (0)20 3328 5656 |
Nick Athanas / James Reeve | |
Beaufort Securities Limited (Joint Broker) | |
Elliot Hance | +44 (0)20 7382 8300 |
Cadogan Leander (Financial PR) | |
Christian Taylor-Wilkinson | +44 (0)7795 168 157 |
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.