17th Sep 2014 11:02
LONDON (Alliance News) - PeerTV PLC said Wednesday that it has received a conditional purchase order from Kartina GmbH to buy 20,000 set top boxes for USD1.2 million, and said a project has been delayed.
The order is conditional on satisfactory technical due diligence by Kartina in respect to PeerTV's new generation set top box using high efficiency video coding. As a result, there can be no guarantee that the order will be finalised. This due diligence is expected to be completed November 1.
PeerTV also announced that due to customer delays in implementing mass production of the order from its subsidiary Digitek SMT Assemblies Ltd, it is now likely the project will not be completed by the end of 2014.
PeerTV signed an agreement for a GBP200,000 revolving line of credit with CSS Alpha (BVI) Ltd. Up to GBP100,000 of the facility will be in the form of either debtor financing, or purchase order financing, said the company. Up to GBP140,000 of this facility will be used to settle some payments with former bankers of its subsidiary SM Digitek Ltd.
The facility will be secured by a debenture of PeerTV's assets, and the company noted that if this debenture is exercise in the event of a default by the company, it may result in its ceasing to control, own, or conduct all of its trading activities or assets.
PeerTV has requested an advance of GBP100,000 of the facility, which will result in the issue of 41.2 million warrants with an exercise price of 0.25 pence.
Shares in PeerTV were trading flat at 0.2250 pence per share Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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