Business
Final Settlement of VCS Consideration
Final Settlement of VCS Consideration.
About this update from Pebble Beach Systems Group Plc
[{"type":"text","content":"\n \nRNS Number : 9509Z Pebble Beach Systems Group PLC 20 March 2017 \n\n \n \n \nPebble Beach Systems Group plc (the \"Company\" or the \"Group\")\n \nFinal Settlement of VCS Consideration\n \nSubsequent to the announcement of 7 March 2017, agreement has been reached between xG Technology Inc (\"xG\") and the Company whereby the outstanding Deferred Consideration of $4.9 million due from xG has been settled in full by a cash payment of $2 million and the release of the $125,000 in escrow from the Initial Payment.\n \nFollowing this latest agreement there will be no further liability by the Company to xG or in respect of VCS, save for the remaining 3 year lease obligations at Hemel Hempstead, amounting to approximately £1.2 million. This remained a liability of the Company under the original Business Purchase Agreement.\n \nxG and the Company will continue to work together to recover by 30 September 2017 the $2 million due to the Company in respect of one debtor, as outlined in the announcement of 16 January 2017.\n \nThe Board considers that there is significant benefit to the Company by the removal of uncertainty relating to the sale of VCS.\n \nAs a result of the receipt of $2.125 million referred to above, and the previous arrangements where part of the Deferred Consideration due from xG was settled by xG settling VCS creditors which remained with the Company, the Company has been able to reduce its net debt from £17 million to approximately £12 million. The Board remains in regular dialogue with its bank, who remain supportive.\n \nThe Board confirms that it expects to announce the results for 2016 on 31 March 2017 as previously announced.\n \n \n \nFor further information please contact:\n \n \n\n\n\n\nJohn Varney\nNon-Executive Chairman\nPebble Beach Systems Group plc\n\n\n+44 (0) 75 55 59 36 02\n\n\n\n\n \n\n\n\n\nCharlie Jack / Bertie Berger \nHudson Sandler\n\n\n+44 (0) 20 77 96 41 33\n\n\n\n\n\n\n\n\n\n\n\n\nShaun Dobson / James White\nN+1 Singer \n\n\n+44 (0) 20 74 96 30 00\n\n\n\n\n \n \nThe Company is listed on the LSE AIM market (PEB.L). More information can be found at www.pebbleplc.com.\nAbout Pebble Beach Systems Limited \n \nPebble Beach Systems Limited (Pebble) is a leading developer and supplier o...