Re. TSX announcement & amendment to Loan Agreement (4040W)
January 30 2012 - 9:00AM
UK Regulatory
TIDMTPS
RNS Number : 4040W
Turbo Power Systems Inc
30 January 2012
30 January 2012
Turbo Power Systems Inc. ("TPS" or the "Company")
Response to TSX announcement & amendment to Loan
Agreement
TPS notes the announcement of a listing review issued by the
Toronto Stock Exchange ("TSX") this morning. The announcement
stated:
"Turbo Power Systems Inc. (the "Company") - TSX is reviewing the
Common Shares (Symbol: TPS) of the Company with respect to meeting
the continued listing requirements. The Company has been granted
120 days in which to regain compliance with these requirements,
pursuant to the Remedial Review Process."
The board of directors of TPS will continue to consider the
issues raised by the TSX and the options available for addressing
these and will make further announcements in due course.
The admission of the Company's shares to trading on AIM is
unaffected by today's announcement by TSX.
TAO Sustainable Power Solutions (UK) Limited ("Tao") remains
fully committed to TPS and has expressed its continuing financial
support of TPS' working capital requirements during 2012.
In this respect, Tao has agreed to amend its existing loan
agreement, as previously notified (the "Loan Agreement") with Turbo
Power Systems Limited, a wholly-owned subsidiary of the Company, to
extend its finance facility by a further GBP1,020,000 which will
bring the total sum outstanding under the Loan Agreement to
GBP9,170,000.
The repayment of a temporary extension of the Loan Agreement of
GBP350,000, scheduled to be made within 60 days of 21 December 2011
(as notified on that date), has been waived and is included within
the gross amount repayable under the Loan Agreement.
The Loan Agreement is secured by a first charge over the assets
and undertakings of Turbo Power Systems Limited, the Company's
wholly-owned UK subsidiary.
All other terms of the Loan Agreement, as previously notified,
remain unchanged.
Related Party Transaction
Tao, which holds 75.4% of the issued share capital of the
Company, is a related party for the purposes of the AIM Rules for
Companies ("AIM Rules"). Accordingly the entry into the loan
agreement with Tao constitutes a related party transaction for the
purpose of the AIM Rules.
The Company's independent director considers, having consulted
with finnCap Ltd, the Company's Nominated Adviser, that the terms
of the transaction being entered into by Turbo Power Systems
Limited with Tao is fair and reasonable insofar as the Company's
shareholders are concerned.
For further information, please contact:
Turbo Power Systems Inc. Tel: +44 (0)20 8564 4460
Peter Brown
FinnCap Tel: +44 (0)20 7600 1658
Marc Young/ Henrik Persson
Kreab Gavin Anderson (Financial PR) Tel: +44 (0)20 7074 1800
Michael Turner / Robert Speed
This information is provided by RNS
The company news service from the London Stock Exchange
END
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