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RNS Number : 0180S

ServicePower Technologies PLC

16 December 2016

16 December 2016

ServicePower Technologies Plc

("ServicePower" or "the Company")

Extension of Loan Facility

ServicePower Technologies Plc (AIM: SVR), a market leader in mobile workforce management software, announces that it has entered into a side-agreement with Herald Investment Trust plc ("Herald") to amend the terms of the existing loan between Herald and the Company ("Loan Amendment").

On 8 February 2016, ServicePower entered into an agreement with Herald, pursuant to which Herald agreed to provide ServicePower with an unsecured loan facility of GBP1,000,000 for working capital purposes. Interest is payable upon the loan at the rate of 8 per cent. per annum (the "Facility Agreement"). The principal of the loan and all accrued interest is due to be repaid on 16 December 2016 (the "Loan").

As a result of the recommended cash offer for the Company by Diversis Capital UK Limited ("Diversis") (a subsidiary of Diversis Capital, LLC) (the "Offeror") as announced on 8 December 2016 (the "Offer"), the Company entered into an agreement on 15 December 2016 with Herald whereby the repayment date for the principal of the Loan and all accrued interest has been extended to be on the earlier of:

(a) the date falling fourteen days after the date on which the Offer becomes or is declared wholly unconditional in accordance with its terms in accordance with the provisions of the United Kingdom's City Code on Takeovers and Mergers ("City Code");

(b) the business day immediately prior to the date on which admission of the Company's shares to trading on AIM is cancelled in accordance with Rule 41 of the AIM Rules for Companies ("AIM Rules"), following the Offer becoming or being declared wholly unconditional in accordance with its terms;

(c) the date falling fourteen days after the date on which any other or competing offer ("Alternative Offer") made by any party other than the Offeror and/or its concert parties (as such term is defined in the City Code) to acquire the entire issued and to be issued share capital of the Company in accordance with the City Code becomes or is declared wholly unconditional in accordance with its terms;

(d) the date on which it becomes reasonably apparent to the Company that the Offer or any Alternative Offer will not become wholly unconditional in accordance with its terms, in which circumstances, the Company shall repay to Herald one half of the total principal amount outstanding under the Facility Agreement, together with all accrued interest thereon within five business days of such date and with the remaining balance of one half of the total principal amount outstanding and all accrued interest thereon to be paid by the Company to Herald on 31 May 2017; and

   (e)          31 May 2017.

All other terms of the Loan remain the same.

Related party transaction

Herald is a related party of the Company as it holds more than 10 per cent. of the issued share capital of the Company and is therefore a substantial shareholder for the purposes of the AIM Rules. As a result, the Loan Amendment constitutes a related party transaction for the purposes of the AIM Rules. The Directors of ServicePower, having consulted with finnCap, the Company's nominated adviser, consider that the terms of the Loan Amendment are fair and reasonable in so far as the Company's shareholders are concerned.

City Code

Diversis has confirmed that it does not deem the Loan Amendment to be a 'frustrating action' and will therefore not require shareholder approval pursuant to Rule 21.1 of the City Code.

 
 ServicePower Technologies   finnCap                Newgate Communications 
  Plc 
 Tel: 0161 476 7762          Tel: 0207 220          Tel: 020 7653 
                              0500                   9850 
 Marne Martin, CEO           Jonny Franklin-Adams   Adam Lloyd 
 Simon Evans, CFO            Emily Watts            Helena Bogle 
                              Kate Bannatyne         Sophie Morello 
                                                     Sophie O'Donoghue

About ServicePower

ServicePower, the acknowledged leader in Optimization Technology, provides an innovative global, mobile workforce management software platform used by organizations with mobile workers to maximize productivity and efficiency, intelligently schedule appointments, SLA and complex jobs, as well as parts. Our platform focuses on solving fundamental field service problems with patented routing optimization, M2M connected services, contractor and warranty management, cutting edge enterprise mobile and business management technology, robust business intelligence and asset tracking.

ServicePower is listed on the AIM market of the London Stock Exchange with the ticker SVR.L. For more information please visit http://www.servicepower.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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December 16, 2016 02:00 ET (07:00 GMT)

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