SerVision plc Update re. SerVision Limited and suspension (2396P)

TIDMSEV

RNS Number : 2396P

SerVision plc

24 May 2018

24 May 2018

SerVision plc

("SerVision" or the "Company")

Update re. SerVision Limited and suspension

Further to the announcement released by the Company on 27 April 2018 the Company announces that the Court has agreed to extend the creditor protection period for SerVision Limited to 31 May 2018. This extension to the protection period follows a request being submitted by the Trustees to the Court and has been put in place to help facilitate the completion of the sale of SerVision Limited to a third party buyer. The Board understands that a meeting of creditors of SerVision Limited has been convened for 28 May 2018.

With the Company ranking behind both the secured creditors and other general creditors, the Directors of the Company continue to be of the view that it is extremely unlikely that any value will be returned to the Company from its debts and shareholding in SerVision Limited.

The Company retains its 100% ownership of SerVision UK Limited, the Company's UK operating subsidiary that has acted as the UK distribution arm for SerVision Limited. The Company is currently considering its options with regards to SerVision UK Limited.

Under Rule 15 of the AIM Rules for Companies the Company became an AIM Rule 15 Cash Shell with effect from 22 March 2018, this being the date the Court in Israel granted the freeze order and reached agreement on the appointment of the Trustees. Within six months of becoming an AIM Rule 15 Cash Shell the Company must make an acquisition or acquisitions which constitute(s) a reverse takeover under Rule 14 of the AIM Rules for Companies. In the event that the Company does not complete a reverse takeover under Rule 14 of the AIM Rules for Companies within six months, the Exchange would suspend trading in the Company's shares pursuant to AIM Rule 40.

The Board of the Company remain in continued discussions with the Company's advisers and third parties in respect of the restructuring of the Company to clear the Company's debts and provide it with sufficient capital as an AIM Rule 15 Cash Shell. There can be no guarantee that the discussions in respect of the restructuring of the Company will be successful. If no such discussions can be successfully concluded then the Company would need to be placed into the appropriate insolvency process.

The Company's ordinary shares remain suspended from trading on AIM.

Further updates will be provided by the Company at the appropriate time.

Certain terms used in this announcement shall have the same meaning as the definitions in the Company's announcement released on 18 April 2018.

-ends-

For further information:

 
SerVision plc 
Eitan Yanuv (Finance Director)                         [phone] 
 Antony Legge (Non-Executive Director)                  5656 
Allenby Capital Limited (Nominated                     [phone] 
 Adviser and Broker)                                             5656 
Nick Athanas 
 John Depasquale 
 
 
Leander PR (Financial PR) 
                             [phone] 
Christian Taylor-Wilkinson               157 
 

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May 24, 2018 10:29 ET (14:29 GMT)