20th Feb 2012 07:00
LED International Holdings Limited
("LED" or the "Company")
Renewal of Loan Facility with Ping An Bank Company, Limited
The Board of LED is pleased to announce that Ping An Bank Company, Limited has granted a new loan facility of RMB3.0 million (approx. £300,000) (the "Loan") to the Company's wholly owned subsidiary, Kepu Electronic Technology (Shenzhen) Company, Limited ("Kepu"). The Loan has been granted on identical terms to the original loan granted last year, further details of which were announced on 24 February 2011 (the "Original Loan"), and will be used to augment Kepu's working capital position and facilitate its organic growth plans. The Original Loan was repaid in full by LED in accordance with its terms.
The Loan expires twelve months from drawdown and attracts interest at 10 per cent. above the prevailing lending rate per annum determined by the People's Bank of China. Kepu is required to repay the Loan by monthly instalments of RMB50,000 (approx. £5,000) commencing six months from drawdown with the remaining balance (plus accrued interest) payable at the end of the Loan facility. The Loan is secured by a first charge over Rooms 1014-1016, Shen Hua Commercial Building, 2018 Jia Bin Road, Luo Wu, Shenzhen, the People's Republic of China (the "Property"), currently occupied and used by the Company's LED lighting solutions operating company, Shenzhen Strongbase New Opto- Electronics Technology Company Limited.
The Property isowned by the family of the Company's Chairman, Mr. Thomas Li, and given Thomas Li's relationship with the Company, the granting of security over the Property by the family of Mr. Thomas Li in order to facilitate the Loan being granted to LED is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Thomas Li), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
**Ends**
For further information:
LED International Holdings Limited | |
Stephen Chan - Chief Executive Officer | +852 2243 3100 |
Allenby Capital Limited | |
Nick Naylor / Alex Price | +44 (0) 20 3328 5656 |
Notes to Editors:
LED International Holdings Limited and its subsidiaries specialise in the development, manufacture and sale of low powered led screens, outdoor signs, lamps, lighting and building illumination; and high powered / medium powered led energy efficient indoor and outdoor lighting products.
For more information, please visit: http://www.led-intl.com
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