LONDON (Alliance News) - AIM listed SerVision PLC Monday said it has issued 750,000 new shares at 5.2 pence each to YA Global Master SPV Ltd and Yorkville Advisors Global LP, a designee of YA Global, in the place of GBP39,000 of outstanding fees payable to YA Global.
SerVision shares were Monday quoted up 29% at 3.38p.
In a statement, the digital security systems developer and manufacturer said it issued 509,615 new shares to YA Global and 240,385 new shares to Yorkville.
The new repayment schedule follows an agreement made on August 18 under which the parties decided to restructure the repayments under a previous loan agreement and to amend a standby equity distribution agreement to allow for the payment of outstanding fees through the issue of new shares in SerVision.
The new repayment schedule agreed requires that, from November 15, the outstanding principal amount of GBP366,168 will be repaid in nine monthly instalments of GBP40,735.38, along with GBP25,763.32 in interest payments.
Under the terms of a November 2013 loan agreement, YA Global provided SerVision with a loan facility of up to GBP1 million, backed up by a standby equity distribution agreement. However, the agreement meant the loan was not convertible into new shares, except in the event of default.
To date, SerVision has drawn down GBP500,000 in two equal tranches in order to repay GBP150,000 of outstanding loans it had with Mizrahi Bank and Bank Leumi. The remainder was used for general working capital purposes.
In addition, SerVision said it is at an "advanced stage" of raising a further GBP68,628 through a subscription of new shares in the company. SerVision said it Monday received GBP68,628 in cash from two private investors but noted that it is yet to issue or allot any shares. It expects the issue price to be 5.2p per share, equal to that of the shares issued to YA Global and Yorkville Advisors.
The company has not yet received signed subscription letters from the investors.
"Once the investors have entered into subscription letters with the company, the company will allot the shares and make application for the listing of the new shares to trading on AIM," SerVision said in a statement.