Business
Further Working Capital Loan Agreement
Further Working Capital Loan Agreement.
About this update from Transense Technologies Plc
[{"type":"text","content":"\n \n \n RNS Number : 1866G\n Transense Technologies PLC\n 16 March 2020\n \n \n \n \n Transense Technologies plc\n \n \n (\"Transense\" or the \"Company\")\n \n \n Further Working Capital Loan Agreement with Bridgestone \n \n \n Transense Technologies plc, the provider of sensor systems for the industrial, mining and transportation markets, is pleased to announce that the agreement of a further working capital loan with Bridgestone Corporation, Japan (\"Bridgestone\").\n \n \n On 13 August 2019, Transense announced that it had entered into a Joint Collaboration Agreement (\"JCA\") by which Bridgestone offers the iTrack system exclusively as a mining tyre monitoring system for tyres 57 inches and above for its off-the-road (\"OTR\") customers. At that time, Transense also drew down an unsecured loan from Bridgestone of US$0.75m to provide additional working capital for the unprecedented increase in sales activity under the JCA. The loan was interest free, and repayable from a proportion of future relevant subscription income, or after three years if earlier. \n \n \n The current pipeline of sales opportunities indicates that it is appropriate to put in place, and draw down, a further unsecured loan of US$1.2m in order to build additional inventory of iTrack kits. This further loan is also interest free, and repayable from a proportion of future relevant subscription income or upon the cessation of the JCA if earlier. \n \n \n On 12 February 2020, as previously announced, Transense and Bridgestone agreed to extend the duration of the JCA until 12 February 2022 at the earliest, and extend the period during which Transense undertake not to have discussions with other parties relating to any transaction of a merger, acquisition or joint venture nature relating to the iTrack business until 30 April 2020.\n \n \n For further information please visit \n \n www.transense.co.uk\n \n or contact:\n \n \n \n \n \n \n \n \n \n Transense Technologies plc\n \n \n Nigel Rogers, Non-executive Chairman\n \n \n Melvyn Segal, Chief Financial Officer\n \n \n \n \n Tel: +44 (0) 1869 238380\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n finnCap\n \n \n Ed Frisby, Giles Rolls,\n Matthew Radley (Corporate Finance)\n \n \n Tim Redfern, Tim Harper (ECM)\n \n \n \n \n Tel: ...