Pebble Beach Systems Group plc (the "Company" or the "Group")
Final Settlement of VCS Consideration
Subsequent to the announcement of 7 March 2017, agreement has been reached between xG Technology Inc ("xG") and the Company whereby the outstanding Deferred Consideration of $4.9 million due from xG has been settled in full by a cash payment of $2 million and the release of the $125,000 in escrow from the Initial Payment.
Following this latest agreement there will be no further liability by the Company to xG or in respect of VCS, save for the remaining 3 year lease obligations at Hemel Hempstead, amounting to approximately £1.2 million. This remained a liability of the Company under the original Business Purchase Agreement.
xG and the Company will continue to work together to recover by 30 September 2017 the $2 million due to the Company in respect of one debtor, as outlined in the announcement of 16 January 2017.
The Board considers that there is significant benefit to the Company by the removal of uncertainty relating to the sale of VCS.
As a result of the receipt of $2.125 million referred to above, and the previous arrangements where part of the Deferred Consideration due from xG was settled by xG settling VCS creditors which remained with the Company, the Company has been able to reduce its net debt from £17 million to approximately £12 million. The Board remains in regular dialogue with its bank, who remain supportive.
The Board confirms that it expects to announce the results for 2016 on 31 March 2017 as previously announced.
For further information please contact:
John Varney Non-Executive Chairman Pebble Beach Systems Group plc |
+44 (0) 75 55 59 36 02 |
Charlie Jack / Bertie Berger Hudson Sandler |
+44 (0) 20 77 96 41 33 |
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Shaun Dobson / James White N+1 Singer |
+44 (0) 20 74 96 30 00 |
The Company is listed on the LSE AIM market (PEB.L). More information can be found at www.pebbleplc.com.
About Pebble Beach Systems Limited
Pebble Beach Systems Limited (Pebble) is a leading developer and supplier of automation, channel in a box, integrated and virtualised playout technology for TV broadcasters, service providers, and cable and satellite operators. Founded in 2000 and headquartered in Weybridge, Surrey, Pebble has developed a portfolio of successful products which have the flexibility to support a wide range of broadcast applications with scalable products designed for highly efficient multichannel transmission as well as complex news and sports television. Installed in more than 70 countries and with proven systems ranging from single up to over 150 channels in operation, Pebble's international client base includes TV Globo Brazil, Fox News and Business channels USA, ZDF Germany, Orbit Showtime Network UAE, TV4 Sweden, TV2 Denmark, MTG UK, DMC in the Netherlands and AMC Networks Inc. USA.
