Servelec Group Regulatory News (SERV)

23 Aug 2007 10:49

Servocell Group PLC23 August 2007 Servocell Group Plc ("Servocell" or "the Company") Servocell is a provider of Active Latch technology that controls, with lowenergy inputs, the movement or motion of mechanisms. Servocell is exploiting itsActive Latch technology in the global locks market. Related party transaction On 9 August 2007 the Company announced that it had agreed terms for a £1 millionloan ("the Loan") with one of the Company's major shareholders, GreenbrookIndustries Limited ("Greenbrook"). The Loan (which is a related partytransaction, pursuant to Rule 13 of the AIM Rules for Companies, due toGreenbrook being a substantial shareholder in the Company and Richard Greenbeing a director of both Servocell and Greenbrook and interested in shares inGreenbrook) is conditional upon the related party conditions of Rule 13 of theAIM Rules for Companies having been met. The Directors (with the exception of Richard Green who is involved in thetransaction as a related party) consider, having consulted with the Company'snominated adviser, Brewin Dolphin Securities, that the terms of the transactionare fair and reasonable insofar as shareholders are concerned. For further information please contact: Mike Hartley, Executive Chairman, Servocell Group plc 01279 621 500 Jon Fitzpatrick, Corporate Finance, Brewin Dolphin Securities 0845 213 4222 Shane Dolan, Biddicks 0207 448 1000 About Servocell Servocell is a provider of Active Latch technology that controls with low energyinputs the movement or motion of mechanisms, such as locks. The Group's devicesare underpinned by piezo ceramic actuators, which are well established in manyapplications such as reversing sensors for motor vehicles. Through significantinvestment, Servocell has developed a unique low-cost methodology for creatingactuators which give relatively large movement at a low power input. The Companyhas applied this technology into modules under the Active Latch brand for saleinto lock manufacturers' products. More recently, to fully exploit application of the technology, the Group hasbeen developing a range of "Ready to Go" products under the Cabinet Latch andActive Escutcheon brands. These are being sold primarily through majordistributors and where appropriate as private label lock manufacturer'sproducts. This information is provided by RNS The company news service from the London Stock Exchange