24 Dec 2012 12:40
24 December 2012
Eco City Vehicles PLC
("ECV" or "the Company")
Re: One80 Limited
Eco City Vehicles PLC, the developer and supplier of the London licensed Mercedes Vito taxi, is pleased to announce that further to its announcement on 20 July 2012, ECV has reached an agreement with the seller of certain shares in One80 Limited ("One80").
One80 is ECV's technology subsidiary and owner of the intellectual property rights in the rear wheel steer technology used on the Mercedes Vito taxi. One80 is party to a licence agreement, signed in July 2011, which provides a fixed licence fee per Vito taxi produced with a minimum guaranteed level of 450 units per annum.
On 20 July 2012 the Company announced that, following the acquisition of shares in One80 in November 2010 ("One80 Stake"), shares were to be issued by ECV as part consideration for the One80 Stake (the balance being paid in cash). The issue of those shares was subject to the Company obtaining a report as required by section 593 of the Companies Act 2006. At the date of that announcement the report had not been obtained and accordingly no shares had been issued.
On 21 December 2012 ECV reached an agreement with the seller of the One80 Stake pursuant to which ECV will issue 9,216,000 ordinary shares in the capital of the Company in full and final settlement of the consideration owing in respect of the One80 Stake and other matters. The agreement is conditional on a report being delivered to the Company in accordance with section 593 of the Companies Act 2006.
It is anticipated that admission to trading on Aim of the ECV shares to be issued pursuant to the agreement will occur on or before 31 January 2013, following receipt of the report required by section 593 of the Companies Act 2006. Following admission of the new ECV shares, the total number of voting rights in the Company's ordinary shares will be 465,749,854.
John Swingewood, chairman of ECV, said: "The settlement with the seller of the One80 shares further simplifies the Company's balance sheet following the completion of the share placing in September and the repayment of the Company's long term bank debt following disposal of the Coventry property earlier this month."
Enquiries:
Eco City Vehicles plc | +44 20 7377 2182 |
Peter DaCosta, Chief Executive Officer Ran Oren, Finance Director | |
Numis Securities Limited | +44 20 7260 1000 |
Stuart Skinner (Nominated Adviser) | |
David Poutney (Corporate Broker) | |
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Luther Pendragon | +44 20 7618 9100 |
Neil Thapar, Alexis Gore | |
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