RSI Rock Solid

TIDMRSI

RNS Number : 9023A

Rock Solid Images plc

05 April 2012

PRESS RELEASE

5th April 2012

Houston

RSI (Rock Solid Images plc AIM: RSI)

Credit Facility Agreement

RSI is pleased to announce that it has signed definitive agreements in relation to the Credit Facility of up to $1 million with affiliates of its two largest shareholders, East Hill Venture Fund LLP ('East Hill') and Euro Trans Skips AS ("EuroTrans").

At the time of RSI's announcement of 12th March we stated that although the Group's backlog and prospective pipeline was at record levels the operational delays in processing client data in January and February required the Company to have a stronger working capital base and in order to address this short term requirement the Board had agreed with East Hill and EuroTrans, two of the Company's largest shareholders, to put in place a secured credit facility. At that time, an initial advance of $250,000 was made.

This facility provides funding to the Company's main trading subsidiary, Rock Solid Images, Inc., and will help it continue to take advantage of the continued flow of WISE and WSS opportunities, several of which have already been identified as revenue generating projects, which we continue to see.

The credit facility provides the Company with access to short term financial support.

The principal terms of the facility are:

1) up to $1 million is being provided equally by EuroTrans and East Hill (the "Lenders") to the Company;

2) interest is payable at 14% p.a. to the Lenders monthly in arrears commencing on 31st March 2012;

3) security cover is a floating charge in favour of the Lenders covering all of the assets of the Company and its main trading subsidiary Rock Solid Images, Inc; and

4) the facility will cease to be available on 30th September 2012 unless otherwise agreed in writing by both Lenders and the loan balance and any unpaid interest is to be repaid on or before 30th September 2012, unless otherwise agreed in writing by both Lenders.

The entering into of the credit facility is a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The Directors consider, having consulted with Fox-Davies Capital Limited, the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Richard Cooper, RSI's Chief Executive Officer, said:

"RSI is very pleased to have the continued support of its two largest shareholders. Backlog of WISE and WSS projects within our Houston based subsidiary remains at a high level and further opportunities are being worked on. We appreciate having this additional financial cushion available to help us develop these markets."

CONTACT:

   Richard Cooper - Chief Executive Officer                                          +1 713 723 2566 

Bob Auckland - Chief Financial Officer +44 (0) 7919 490911

Peter Reilly - Non-Executive Chairman +44 (0) 7881 920542

   Fox Davies Capital (Nominated Advisor and Broker)                         +44 (0) 203 463 5000 

Barry Saint

Simon Leathers

www.rocksolidimages.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGRLIFLTSIIEIIF

Rock Solid (LSE:RSI)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024

Rock Solid (LSE:RSI)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024