SIMTRONICS ASA ANNOUNCES FUNDING AGREEMENT WITH AUTRONICA FIRE AND SECURITY AS
Simtronics ASA announced today that it has signed an agreement for bridge funding of NOK 18 million with Autronica Fire and Security AS.
On July 12th, 2010 Simtronics announced that Autronica Fire and Security AS (“Autronica”) had informed it on 11 July 2010 of a non-binding intention to launch a potential offer for all shares in Simtronics. Due to the holiday season in Norway, completion of legal conditions and approval from Oslo Børs a formal offer was not expected until mid August. Simtronics also announced that subject to a satisfactory first phase due diligence, Autronica intended to provide Simtronics with bridge funding of MNOK 18.
This bridge funding agreement has now been signed and the funds will be available for Simtronics subject to satisfaction of customary conditions precedent and additional commitments from the Board relating to the potential acquisition. The agreement is conditional on a covenant breach waiver from Simtronics’ major bank DnB NOR for Simtronics’ anticipated breach of covenants for the Q2 preliminary results. This waiver has been given by DnB NOR subject to certain conditions including with respect to the bridge financing.
The funding is being made available in order to provide additional time for Autronica to review the proposed transaction and prepare a basis upon which to move forward with a potential offer. The Bridge funding will be available through the end of 2010 or for a period of 8 weeks following a possible withdrawal by Autronica from the proposed transaction.
For further information, please contact:
Rune Martini, CEO, Simtronics ASA
Phone 47 48 07 80 80
Simtronics ASA (Oslo Stock Exchange: SIMTRO) works to prevent disasters from happening. The company is an international supplier of fire and gas safety systems, active fire fighting solutions and fire prevention systems. Simtronics' flame and gas detectors represent the most accurate, reliable and robust safety technology available. The Company's products, solutions and systems are used by the oil and gas industry as well as in shipping, petrochemical and other process industries and in mining. Simtronics has a well established market base in Europe with Norway, France, UK and Germany as the single most important markets. Simtronics' heritage goes back to 1948.