SerVision plc Update on existing China distribution agreement (5950B)
January 08 2015 - 1:00AM
UK Regulatory
TIDMSEV
RNS Number : 5950B
SerVision plc
08 January 2015
8 January 2015
SerVision PLC
("SerVision" or the "Company")
Receipt of balance of funds for initial purchase order on
distribution agreement with Beijing SIVI Technology Co., Ltd
("BST")
BST granted the China Compulsory Product Certification
SerVision (AIM:SEV), the AIM quoted developer and manufacturer
of digital security systems, is pleased to announce an update on
the Company's existing distribution agreement with Beijing SIVI
Technology Co., Ltd ("BST") further to the announcements released
by the Company on 16 July 2014 and 6 November 2014. In June 2014
BST was appointed as exclusive distributor of SerVision's video
gateway products in China until June 2016.
On 16 July 2014 SerVision announced that the Company had
received an initial purchase order from BST with an aggregate value
of US$500,000 of which US$271,825 in cash had been paid to
SerVision with the remaining balance of US$228,175 of the initial
purchase order to be paid 3 days after BST grants the China
Compulsory Product Certification ("CCPC") but no later than 31
October 2014. Under the terms of the distribution agreement, BST
also committed to an order schedule comprising a further five
purchase orders with an aggregate value of US$2.0 million, based on
certain terms and conditions being met by SerVision and BST as
stipulated in the distribution agreement.
Further to the update announcement released on 6 November 2014
the Company can confirm that BST has now been granted the CCPC and
that SerVision has now received the balance of US$228,175 in
relation to the initial purchase order.
The CCPC certification will enable BST to begin supplying orders
from a number of customers in China including the Chongqing
municipality.
The Company and BST have also agreed to a revised order schedule
for the subsequent purchase orders such that an additional four
purchase orders with an aggregate value of $1,550,000 are expected
to be be submitted by BST prior to 31 December 2015 and a further
purchase order with an aggregate value of $450,000 is expected to
be submitted by BST prior to 31 March 2016.
Gidon Tahan, Chairman and CEO of SerVision, commented: "We are
pleased to have received the approvals in relation to the CCPC,
received the balance of the cash from BST in relation to the
initial purchase order and to have agreed a revised order schedule
with BST for subsequent purchase orders. We are confident that the
agreement with BST in the Chinese marketplace will contribute
positively to the year ahead and we look forward to our mobile
video streaming solutions being deployed in buses, trucks, police
patrol cars, public safety vehicles, remotely located critical
infrastructure sites and others across China."
-ends-
For further information please visit: http://www.servision.net/
or contact:
SerVision plc +972 2535 0000
Gidon Tahan, Chairman and CEO
Allenby Capital Limited (Nominated Adviser
and Broker) +44 (0)20 3328 5656
Nick Athanas / James Reeve
Leander (Financial PR) +44 (0)7795 168 157
Christian Taylor-Wilkinson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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