SerVision plc Update re suspension (3803J)

TIDMSEV

RNS Number : 3803J

SerVision plc

29 March 2018

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").

29 March 2018

SerVision plc

("SerVision" or the "Company")

Update on the Court hearing in respect of potential administration of SerVision Limited

Update re suspension

Further to the announcements on 20 February 2018, 13 March 2018, 19 March 2018 and 26 March 2018, the Company announces that, on 28 March 2018, the Jerusalem District Court in Israel (the "Court") heard the Company's petition to rescind the freeze order on SerVision Limited, the Company's main operating subsidiary, and allow the Company to explore an expression of interest from a third party to acquire SerVision Limited.

Unfortunately, the Court rejected the Company's petition and the freeze order allowing protection for SerVision Limited from its creditors remains in place until 30 April 2018 (the "creditor protection period"). Advocates Milo and Bar Hillel have been appointed as the trustees (the "Trustees") to oversee the creditor protection period. The Trustees have received a loan of US$ 500,000 from the Cohen family Trust to enable them to finance Servision Limited during the creditor protection period.

The appointment of the Trustees means that the Company no longer has effective control of SerVision Limited and the expected outcome following the end of the creditor protection period remains likely to be the transfer of SerVision Limited to a third party. As previously announced on 13 March 2018, should the Company's main operating subsidiary or subsidiaries be divested from the Company then the Company will become an "AIM Rule 15 Cash Shell" under Rule 15 of the AIM Rules for Companies.

As an AIM Rule 15 Cash Shell, the Company would need to raise sufficient funds to continue operating and to complete an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 within 6 months of becoming an AIM Rule 15 Cash Shell. In the event that the Company does not complete a reverse takeover under AIM Rule 14 within six months of becoming an AIM Rule 15 Cash Shell, the London Stock Exchange would suspend trading in the Company's shares pursuant to AIM Rule 40.

The Directors of the Company continue to be of the view that not much value, if any, will be returned to the Company from its debts and shareholding in SerVision Limited and are in discussions with the Company's advisers and third parties in respect of a potential creditors voluntary arrangement and associated fund raising to clear the Company's debts and provide it sufficient capital to be an AIM Rule 15 Cash Shell.

The Company currently retains its 100% ownership of SerVision UK Limited, the Company's UK operating subsidiary, and the Company is currently considering its options with regards to SerVision UK Limited.

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

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

-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 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 29, 2018 04:08 ET (08:08 GMT)