6th Dec 2018 14:37
LONDON (Alliance News) - Pebble Beach Systems Group PLC, a software business serving broadcasters, said Thursday that it has reached a resolution with xG Technology Inc in regards to a dispute over proceeds from sale of the company's hardware division.
The company sold off its VCS hardware division to xG Technology for USD16.0 million in December 2016.
As part of a revised business purchase agreement for the sale of VCS, it was agreed Pebble Beach would receive in the future funds from an outstanding specific debtor to a maximum of USD2.0 million. Pebble Beach was reliant on xG fulfilling the contract to enable it to recover the debt.
In April 2017, the company received USD250,000 million in cash from xG against this debt. The company then remained in talks with xG to receive the remaining funds.
Pebble Beach said Thursday that it has now completed the process to recover sums from xG and signed a mutual release signed to ensure no further liabilities are due by either party. The company has retained its cash balance estimates following the resolution.
Shares in Pebble Beach were trading 1.9% higher at 5.5 pence each on Thursday afternoon.
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