SerVision plc Amendment to YA Facility (2141O)

TIDMSEV

RNS Number : 2141O

SerVision plc

17 August 2017

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

17 August 2017

SerVision plc

("SerVision" or "the Company")

Amendment to YA Facility and additional draw-down of $541,000

SerVision (AIM:SEV), the AIM quoted developer and manufacturer of digital security systems, announces that, on 16 August 2017, it entered into an agreement to revise the repayment terms with YA II PN, Ltd ("YA") for the current loan between the two parties and to provide an additional loan of $541,000 under the existing facility (the "YA Loan"). This agreement follows the announcement on 30 June 2017 detailing that the Company was seeking to renegotiate terms with YA in order to extend the repayment deadline and to provide additional working capital to help the Company invest in a number of tenders.

As at 15 August 2017, the balance due to YA, including accrued interest, was approximately $406,000. Under the revised terms, the Company is borrowing a further $541,000 under the existing facility with YA, with the repayment date of the YA Loan being extended to 1 August 2018 and six bi-monthly payments averaging approximately $165,000 commencing on 1 October 2017 to cover the principal and interest repayments on the YA Loan. All other terms of the YA Loan remain unchanged including the interest rate which remains at 12 per cent. per annum. YA is also receiving fees of approximately $40,000 in connection with the restructuring of the existing loan and the provision of the additional loan.

In addition the Company has amended the terms of the Standby Equity Distribution Agreement ("SEDA") whereby the commitment period has been extended to 11 November 2019. To date the Company has not drawn on the SEDA and it does not intend to do so at the current time.

Under the agreement entered into on 16 August 2017 the Company has also varied the terms of the existing warrants held by YA. YA will continue to hold 1,210,653 warrants to subscribe for new ordinary shares in the Company, representing 0.9 per cent of the Company's issued share capital (the "YA Warrants"). The exercise price of the YA Warrants has however been amended to 5 pence (previously 10.74 pence) and the expiry date of the warrants has been extended to 1 August 2020 (previously 13 August 2018).

As previously announced, sales for the first half of 2017 were behind the Company's internal expectations albeit that they are ahead of the comparative interim period in 2016. The pipeline remains strong and the board remains optimistic that the Company is moving in the right direction. However, the Company has not achieved breakeven and this loan is necessary to bolster the Company's working capital and enable it to continue competing for new tenders.

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For further information:

 
SerVision plc                        [phone] 
Gidon Tahan, Chairman and CEO 
Allenby Capital Limited         [phone] 
Nick Athanas / Richard Short 
 
 
Leander PR (Financial PR) 
Christian Taylor-Wilkinson   [phone] 
 

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

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August 17, 2017 02:00 ET (06:00 GMT)