Starcom PLC Distribution Agreement and Placing (5531G)
November 07 2018 - 1:00AM
UK Regulatory
TIDMSTAR
RNS Number : 5531G
Starcom PLC
07 November 2018
7 November 2018
Starcom Plc
("Starcom" or the "Company")
Distribution Agreement and Placing
Starcom (AIM: STAR), which specialises in the development of
wireless solutions for the remote tracking, monitoring and
protection of a variety of assets, is pleased to announce that an
agreement has been signed with a local distributor in North
Africa.
The agreement provides for the supply of a number of Helios
Advanced units together with BIO CAN fuel sensors. This is the
first major project in which the Company is implementing this
leading technology to measure and monitor biodiesel fuel tank
levels, while using the existing CANBUS communication system of the
Helios devices. This easily scaleable system provides highly
accurate data and customer alerts via a simple installation
process. In addition, Starcom is providing the necessary software
and appropriate SAS licence relevant to the products.
The total value of the initial order under the agreement is
approximately US$1.1 million. Delivery is expected to be made
before the end of 2018, with the Company receiving payment for the
majority of the order value immediately prior to delivery. The
agreement also provides for the supply of further equipment with a
potential value of up to US$2.5 million on similar terms during
2019, but no firm order has yet been received for these.
It is understood that this equipment and related services will
be provided to a government ministry. Under the terms of the
agreement, there is a non-disclosure and confidentiality clause
which prevents naming the client at this stage.
Assuming that this initial order is satisfactorily delivered by
the year end and that other ongoing orders are all completed as
planned, it is anticipated that revenues for 2018 will comfortably
exceed the current market expectation of US$5.9 million (2017:
US$5.4 million) and that EBITDA will be in line with current market
expectations, namely in the region of US$485,000 (2017: loss of
US$193,000). A further update will be made soon after the year
end.
Placing
To ensure that this and other orders can be delivered as planned
both for this year and early 2019, the Company has conditionally
raised GBP400,000 before expenses through a placing of 20 million
new Ordinary Shares of no par value (the "Placing Shares") at a
price of 2p per Placing Share (the "Placing").
Application has been made for the Placing Shares, which will
rank pari passu with the Company's existing Ordinary Shares, to be
admitted to trading on AIM ("Admission"). It is anticipated that
Admission will become effective at 8 am on 12 November 2018.
Total voting rights
Following Admission, the Company's enlarged issued share capital
will comprise 293,449,513 Ordinary Shares. The Company does not
hold any shares in treasury. Therefore the total Ordinary Shares
with voting rights will be 293,449,513. This figure may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or change in their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
Michael Rosenberg, Chairman of Starcom commented,
"This new agreement is a further endorsement of our ability to
provide state-of-the-art tracking technology products to the global
market. We are at the same time making good progress on sales with
our other product ranges, including the Tetis and the Kylos. The
Watchlock 3 (Bluetooth enabled) padlocks are well advanced in
development and we now expect to be able to make deliveries early
in 2019 to customers who have already placed provisional
orders."
This Announcement contains inside information for the purposes
of Article 7 of the EU Market Abuse Regulation (2014/596/EU)
("MAR"). Market soundings as defined in MAR were taken in respect
of the Placing with the result that certain persons became aware of
inside information, as permitted by MAR. That information is set
out in this announcement and has been disclosed as soon as possible
in accordance with paragraph 7 of Article 17 of MAR.Therefore those
persons that received inside information in a market sounding are
no longer in possession of inside information relating to the
Company and its securities.
For further information, please contact:
Starcom Plc
Michael Rosenberg, Chairman 07785 727 595
Avi Hartmann, CEO +972 5447 35663
Northland Capital Partners Limited (Nominated Adviser and Broker) 020 3861 6625
Matthew Johnson / Edward Hutton (Corporate Finance)
Rob Rees (Sales and Broking)
Peterhouse Capital Limited (Joint Broker) 020 7469 0930
Lucy Williams / Duncan Vasey / Eran Zucker
Leander PR (Financial PR) 07795 168 157
Christian Taylor-Wilkinson
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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