 have secured $2 million worth of capital from US investment fund Cascade SVP at a 280 percent premium, the company announced.){kind=link}
SerVision plc (LON:SEV) have secured $2 million worth of capital from US investment fund Cascade SVP at a 280 percent premium, the company announced on Wednesday.
SerVision plc, a mobile streaming technology specialist, agreed the sale of 14.1 million shares at 11.4p each to Cascade. Following the subscription, Servision said that Cascade will hold around 10 percent of its upwardly revised share capital.
Gidon Tahan, Chairman and CEO of SerVision, stated, “This investment is a very positive endorsement for the Company and its future potential, and we welcome Cascade as one of our major shareholders. The Company has been under capitalised in recent years and this significant boost to our financial strength will allow us to pursue a number of opportunities around the world that, if converted into new customers, will help the Company to become cash flow positive.”
Alongside the initial $2 million acquisition of shares, Cascade also has the opportunity to invest a further $4 million in two equal tranches. Specifically, the primary option period runs until 20 October 2017, with an option price per share of 10.2p per share, with the second option period ending by 29 September 2018, with the option price per share of around 9.3p per share.
Craig Flashner, a Director of Cascade, said, “We are very pleased to be investing in SerVision. The worldwide mobile DVR market is growing dramatically and we believe that SerVision has superior technology in this market. In addition, we believe there is significant potential in their relationship with Mobileye, which opens access to their customers worldwide.”
Currently, SerVision’s products are used by G4S (LON:GFS), Brinks (NYSE:BCO), Loomis (STO:LOOM-B) and the Royal Mail to assist with their cash handling operations. The company has been in existence since 2000 and is a leading producer of portable video surveillance products using wireless video technologies.
Shares in SerVision have more than doubled following news of the capital agreement, shares are rallying 127.27 percent as of 11.56 AM (GMT).