Source - RNS
RNS Number : 1884I
SerVision plc
15 June 2017
 

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). 

 

 

15 June 2017

 

SerVision plc

("SerVision" or "the Company")

 

 

Notice of Extraordinary General Meeting

and

Trading Statement

 

 

 

SerVision plc, the AIM quoted developer and manufacturer of digital security systems, will today post a circular to shareholders convening an Extraordinary General Meeting of the Company to be held at the offices of Adams & Remers LLP at Commonwealth House, 55-58 Pall Mall, London SW1Y 5JH on Monday 10 July 2017 at 11 a.m. 

 

The notice of Extraordinary General Meeting and a form of proxy will be available shortly to download from the Company's website (www.servision.net).

 

 

Cascade Options

 

On 22 February 2017 SerVision plc (the "Company") announced the terms of a subscription ("Subscription") for new ordinary shares of 1 pence each ("Ordinary Shares") in the capital of the Company made by Cascade SVP, LLC ("Cascade") to raise US$2 million.  The Subscription was made in two separate tranches with the initial US$1 million being received by the Company on 1 March 2017 resulting in the allotment to Cascade of a total of 7,107,850 new Ordinary Shares at an issue price of 11.3 pence and the second US$1 million being received on 25 May 2017 resulting in the allotment to Cascade of a further 7,107,850 new Ordinary Shares also at an issue price of 11.3 pence each.

 

In addition to the US$2 million subscription, Cascade was granted options ("Options") to invest up to a further US$4.0 million, in two equal tranches at the same valuation as the Subscription.  The first tranche ("First Tranche") is an option to subscribe for up to 15,795,222 new Ordinary Shares (being 11.1% of the current issued share capital) at 12.66 cents each (equivalent to approximately 9.97p at today's exchange rate), amounting to up to $2.0 million in aggregate, and exercisable by 20 October 2017. The second tranche ("Second Tranche") is an option to subscribe for up to 17,374,919 new Ordinary Shares at 11.51 cents each (equivalent to approximately 9.06p at today's exchange rate), again amounting to up to $2.0 million in aggregate, and exercisable by 29 September 2018.

 

As at the date of this circular Cascade has a beneficial interest in 14,215,700 Ordinary Shares representing 10.0% of the share capital of the Company. Should Cascade choose to exercise the First Tranche in full, and assuming that no other new Ordinary Shares are issued by the Company, then Cascade would hold up to 19 % of the enlarged issued share capital of the Company.  Should Cascade choose to exercise both the First Tranche and the Second Tranche in full, and assuming that no other new Ordinary Shares are issued by the Company, then Cascade would hold up to 27% of the enlarged issued share capital of the Company.

 

In order to unconditionally grant the Options and issue new Ordinary Shares pursuant to their future exercise, shareholder approval is required.

 

Resolution 1 in the notice set out in the circular being posted to shareholders today is an ordinary resolution and authorises the Directors to grant the Options and allot Ordinary Shares following their exercise up to a nominal value of £331,701.41 and Resolution 2 is a special resolution to give the Directors power to disapply statutory pre-emption rights in respect of such authority.

 

 

Trading Update for 2016

 

The Company has previously stated that they were cautiously optimistic of an improved result for the 12 months ended 31 December 2016 when compared to the comparative period in 2015. Unfortunately, December 2016 was a disappointing month for the Company. A number of sales that had been anticipated for the period, some of which the Company had received pre-payments for, have not been recognised in 2016 and slipped into 2017. However, costs had already been incurred by the Company against their expected delivery. In addition, the Company has incurred a number of non-cash accounting adjustments.  The result of reduced sales and increased costs meant that the company is expected to report a total comprehensive loss for the year that is marginally worse than 2015. Overall, revenues for 2016 were slightly ahead of 2015 but slippages of orders into early 2017, a lower gross margin and the higher costs referred to above has led to the increased loss.

 

A further update will be provided at the time of the release of the results for the year ended 31 December 2016 which are due for release by 30 June 2017.

 

Registered office address

 

Following a recent change of building name the Company's registered office is Commonwealth House, 55-58 Pall Mall, London, SW1Y 5JH.

 

-ends-

 

 

For further information:

 

 

SerVision plc

+972 2535 0000

Gidon Tahan, Chairman and CEO

 


Allenby Capital Limited (Nominated Adviser and Joint Broker)

+44 (0)20 3328 5656

Nick Athanas / Richard Short


 

Beaufort Securities Limited (Joint Broker)


Elliot Hance

+44 (0)20 7382 8300

 

Leander PR (Financial PR)


Christian Taylor-Wilkinson

+44 (0)7795 168 157

 

 

 

Notes to Editors

 

SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network.

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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