APC Technology Regulatory News (APC)

Advanced Power Components Plc

("APC" or the "Company")

Increased shareholding in Minimise

Issue of Convertible Loan Notes

Advanced Power Components (AIM: APC), the UK specialist distributor and manufacturers' representative of electronic components, is pleased to announce that the Company has reached agreement with the Directors and shareholders of Minimise Limited ("Minimise"), whereby APC will subscribe to a new issue of shares in Minimise. The share subscription will increase APC's holding in Minimise to 51% and allows APC to take effective control and treat Minimise as a subsidiary undertaking in the Company's accounts.

Minimise is a company engaged in the sales and marketing of the Minimise range of LED lights and fittings, the imop® and other products which enable their clients to reduce their energy consumption. 

Consideration for the shares in Minimise will be paid in cash for a total sum of £118,061. The funding in Minimise will be used to finance the growth of its business and to fund working capital. In order to finance, inter alia, the cash consideration for this acquisition, the Company has issued unsecured convertible loan notes ('Convertible Loan Notes'), in an amount of £100,000, which have been subscribedtoby Roger Robinson, a substantial shareholder in the Company.

The Convertible Loan Notes, which mature on 1 August 2017, carry a coupon of 8 per cent. per annum, payable quarterly in arrears until such time as they are repaid or converted in accordance with their terms.

Under the terms of the Convertible Loan Notes, the holder may convert all or part of the Convertible Loan Notes held by them into new Ordinary Shares in the Company on delivery to the Company of a conversion notice, at the conversion rate, being the lower of 11p and the average mid-market price for the 14 days preceding the conversion date.

The issue of the Convertible Loan Notes to a substantial shareholder of the Company is deemed to be a related party transaction under the AIM Rules. The Directors consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that the terms of the Convertible Loan Notes are fair and reasonable insofar as the Company's shareholders are concerned.

This announcement follows the announcements made on 7 August and 7 September 2012. The Company confirms that now it has reached a 51% controlling stake, that it has no further plans to increase its shareholding in Minimise.

Mark Robinson, Chief Executive Officer of APC, commented:

"We are pleased to have completed the investment in Minimise Limited and gain a controlling stake in the business. The combined business will enable Minimise to accelerate its growth and enable APC to achieve its strategic aim of entering the market for energy saving products and technologies."

Paul West, Managing Director of Minimise Limited, commented:

"We greatly welcome the investment from APC; becoming a subsidiary company of a respected AIM listed company will help us develop the business. Minimise has made significant strides in the past year to commercialise a portfolio of energy saving technologies that is now being offered to our customers as an overall solution to their challenge of significantly reducing their energy consumption."

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About Advanced Power Components

APC plc is a leading specialist distributor of electronic components, comprising nine areas of activity:

§ APC Hi-Rel distributes a variety of specialist electronic components into applications where component reliability is of paramount importance. Hi-Rel's franchised product lines include power semiconductors, power supplies, memory, wound and high voltage components.

§ APC Locator is the number one solutions provider for obsolete and hard-to-find parts, with 25 years' experience in the industrial and defence/aerospace markets across Europe.

§ APC Hero has a specialist technical sales team focussing on sensors and measurement, power management, communications & connectivity and embedded computing applications.

§ APC Go! provides a kitting and materials management service to companies wanting to outsource non core activities, offering services ranging from material procurement to full production management.

§ APC Displays+ provides dedicated technical and commercial support for a wide range of displays, driver boards, ICs, single board computers and all related connectivity.

§ APC Novacom is a distributor and manufacturers' representative for RF and microwave frequency electronic components. The business is managed by a team of technical specialists with many years experience in the RF and Microwave industry.

§ APC Contech is a distributor of specialist data input devices for industrial, broadcasting and medical sectors providing technically advanced solutions for specific application areas.

§ APC imop™ is a manufacturer and distributor of power saving equipment which optimises the performance of electrical motors, leading to reduced energy consumption and cost savings.

§ QV Controls Limited is a designer, manufacturer and supplier of DALI-IP technology based lighting and energy management systems that improve energy efficiency and lighting performance within commercial, industrial and high end residential buildings.