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LONDON (Alliance News) - Wireless remote tracking and monitoring products company Starcom PLC on Thursday said Global Tracking Technology PLC, its African distributor, has signed a deal to supply a fleet management and tracking system to a client in Ethiopia.
Starcom said Ethio Telecom, the Ethiopian telecommunications company, will use its Helios product. The initial deal will cover 1,300 vehicles, but Ethio has already expressed its intention to extend the order to cover another 3,000 fuel management system for generators at its base stations.
The deal is worth around USD150,000 over three years to Starcom.
"This new order is the first we have achieved with a telecom company which includes its own SIM card installed with our tracking solution. The board believes that this may help in opening up additional businesses in this sector," said Avi Hartmann, Starcom's chief executive.
In addition to the contract, Starcom said it has entered into a convertible loan facility with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors Global LLC.
Starcom said the total amount available under the facility is limited to USD2.0 million and it will draw down an initial tranche of USD250,000 immediately to provide additional working capital.
The conversion rate on the facility is at 4.0 pence per share for the first USD100,000 of the drawdown, then at 7.0p for the remainder of the first drawdown. After that, the conversion price will be at 92.5% of the lowest share price during the ten consecutive trading days prior to a conversion notice date.
Starcom shares were untraded early Thursday, having last traded at 3.25 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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