LONDON (Alliance News) - SerVision PLC on Wednesday said that major shareholder Gabriel Sassoon will provide the company with an unsecured loan facility of USD1.0 million, giving the company access to working capital and cash to supplement its own resources.
The loan carries an annual interest rate of 6.0% and is repayable on February 15, 2019. SerVision, a digital video security systems manufacturer, said it has the ability to repay the loan in monthly installments.
Gabriel Sassoon holds 19 million shares in the company, representing 15% of its issued share capital.
He could see his shareholding rise if SerVision does not repay the outstanding amounts on the loan by the repayment date. Servision will be "obliged" to issue new shares in the company to Sassoon if it is unable to make the repayment date.
"In such circumstances the issue price of the conversion shares would be calculated on the basis of the average closing mid-market price of the company's ordinary shares for the calendar month prior to the repayment date, subject to the issue price of the conversion shares being no less than 3.5 pence per share (a 40% premium to the closing mid-market price of the company's shares as at 23 February 2016)," SerVision said.
Shares in SerVision were trading down 3.6% at 2.41 pence on Wednesday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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