Screen Technology Group plc
06 November 2007
Screen Technology Group plc
Loan and Trading Agreement with Shearline Precision Engineering Limited
Screen Technology Group plc ("Screen Technology" or the "Company") announces
that it has entered into a Loan and Trading Agreement (the "Agreement") with
Shearline Precision Engineering Limited ("Shearline"). The agreement underpins a
key strategic relationship with Shearline and provides the Company with £500,000
of working capital funding.
Shearline is an established strategic partner based in Ely which manufactures
iTrans tiles and modules on behalf of Screen Technology. Under the terms of the
Agreement Shearline will provide Screen Technology with a loan of up to
£500,000, repayable in equal instalments over 60 months, to fund the Company's
existing debt of £333,694 from Shearline and to fund further manufacturing and
development costs. The loan bears interest at a variable commercial rate, can be
repaid without penalty at any time and is secured by way of debenture on the
Company's intellectual property. This security will be released on repayment of
the loan. Shearline have also been granted warrants over 1,000,000 Ordinary
Shares, representing approximately 2.8 per cent of the current issued share
capital, exercisable at a subscription price of 5p per share at any time until
November 2012.
Peter Smyth, non-executive Chairman said:
"We are delighted with this further strengthening of our relationship with
Shearline which also provides us with significant additional financial
resources."
Enquiries:
Screen Technology Group plc 01223 559600
Thomas Jarman, CEO
Charles Stanley Securities 020 7149 6000
(Nominated Adviser)
Russell Cook
Henry Fitzgerald O'Connor
This information is provided by RNS
The company news service from the London Stock Exchange