Detail20 Feb 2012 07:03
enewal of Loan Facility with Ping An Bank Company, Limited
The Board of LED is pleased to announce that Ping An Bank Company, Limited has granted a new loan facility of RMB3.0 million (approx. £300,000) (the "Loan") to the Company's wholly owned subsidiary, Kepu Electronic Technology (Shenzhen) Company, Limited ("Kepu"). The Loan has been granted on identical terms to the original loan granted last year, further details of which were announced on 24 February 2011 (the "Original Loan"), and will be used to augment Kepu's working capital position and facilitate its organic growth plans. The Original Loan was repaid in full by LED in accordance with its terms.
The Loan expires twelve months from drawdown and attracts interest at 10 per cent. above the prevailing lending rate per annum determined by the People's Bank of China. Kepu is required to repay the Loan by monthly instalments of RMB50,000 (approx. £5,000) commencing six months from drawdown with the remaining balance (plus accrued interest) payable at the end of the Loan facility. The Loan is secured by a first charge over Rooms 1014-1016, Shen Hua Commercial Building, 2018 Jia Bin Road, Luo Wu, Shenzhen, the People's Republic of China (the "Property"), currently occupied and used by the Company's LED lighting solutions operating company, Shenzhen Strongbase New Opto- Electronics Technology Company Limited.