New loan facility

6 Nov 2007 07:00

Screen Technology Group plc06 November 2007 Screen Technology Group plc Loan and Trading Agreement with Shearline Precision Engineering Limited Screen Technology Group plc ("Screen Technology" or the "Company") announcesthat it has entered into a Loan and Trading Agreement (the "Agreement") withShearline Precision Engineering Limited ("Shearline"). The agreement underpins akey strategic relationship with Shearline and provides the Company with £500,000of working capital funding. Shearline is an established strategic partner based in Ely which manufacturesiTrans tiles and modules on behalf of Screen Technology. Under the terms of theAgreement Shearline will provide Screen Technology with a loan of up to£500,000, repayable in equal instalments over 60 months, to fund the Company'sexisting debt of £333,694 from Shearline and to fund further manufacturing anddevelopment costs. The loan bears interest at a variable commercial rate, can berepaid without penalty at any time and is secured by way of debenture on theCompany's intellectual property. This security will be released on repayment ofthe loan. Shearline have also been granted warrants over 1,000,000 OrdinaryShares, representing approximately 2.8 per cent of the current issued sharecapital, exercisable at a subscription price of 5p per share at any time untilNovember 2012. Peter Smyth, non-executive Chairman said: "We are delighted with this further strengthening of our relationship withShearline which also provides us with significant additional financialresources." Enquiries: Screen Technology Group plc 01223 559600Thomas Jarman, CEO Charles Stanley Securities 020 7149 6000(Nominated Adviser)Russell CookHenry Fitzgerald O'Connor This information is provided by RNS The company news service from the London Stock Exchange