Pebble Beach Systems Group PLC Final Settlement of VCS Consideration (9509Z)
March 20 2017 - 7:22AM
UK Regulatory
TIDMPEB
RNS Number : 9509Z
Pebble Beach Systems Group PLC
20 March 2017
Pebble Beach Systems Group plc (the "Company" or the
"Group")
Final Settlement of VCS Consideration
Subsequent 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.
Following 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 GBP1.2 million. This remained a liability of the
Company under the original Business Purchase Agreement.
xG 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.
The Board considers that there is significant benefit to the
Company by the removal of uncertainty relating to the sale of
VCS.
As 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 GBP17 million to approximately GBP12
million. The Board remains in regular dialogue with its bank, who
remain supportive.
The Board confirms that it expects to announce the results for
2016 on 31 March 2017 as previously announced.
For further information please contact:
John Varney
Non-Executive Chairman
Pebble Beach Systems Group +44 (0) 75 55
plc 59 36 02
Charlie Jack / Bertie Berger +44 (0) 20 77
Hudson Sandler 96 41 33
Shaun Dobson / James White +44 (0) 20 74
N+1 Singer 96 30 00
The Company is listed on the LSE AIM market (PEB.L). More
information can be found at www.pebbleplc.com.
About Pebble Beach Systems Limited
Pebble Beach Systems Limited (Pebble) is a leading developer and
supplier of automation, channel in a box, integrated and
virtualised playout technology for TV broadcasters, service
providers, and cable and satellite operators. Founded in 2000 and
headquartered in Weybridge, Surrey, Pebble has developed a
portfolio of successful products which have the flexibility to
support a wide range of broadcast applications with scalable
products designed for highly efficient multichannel transmission as
well as complex news and sports television. Installed in more than
70 countries and with proven systems ranging from single up to over
150 channels in operation, Pebble's international client base
includes TV Globo Brazil, Fox News and Business channels USA, ZDF
Germany, Orbit Showtime Network UAE, TV4 Sweden, TV2 Denmark, MTG
UK, DMC in the Netherlands and AMC Networks Inc. USA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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