SerVision plc Short Term Loan (1668R)

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                         [phone] 
Gidon Tahan, Chairman and CEO 
Allenby Capital Limited (Nominated    [phone] 
 Adviser and Joint Broker)                      5656 
Nick Athanas / James Reeve 
Beaufort Securities Limited (Joint 
 Broker) 
                                      [phone] 
Elliot Hance                                    8300 
Cadogan Leander (Financial PR) 
                                     [phone] 
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

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December 07, 2016 02:00 ET (07:00 GMT)