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. Back log 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."
Richard Cooper - Chief Executive Officer +1 713 723 2566
Bob Auckland - Chief Financial Officer +44 (0) 7919 490911
RSI - 2600 South Gessner - Suite 650 - Houston, TX 77063 USA - +1 713 783 5593 www.rocksolidimages.com
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
RSI - 2600 South Gessner - Suite 650 - Houston, TX 77063 USA - +1 713 783 5593 www.rocksolidimages.com
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