Amendment to guaranty agreement

RNS Number : 9767P

MTI Wireless Edge Limited

08 October 2013

 



8 October 2013

MTI Wireless Edge Ltd

("MTI" or the "Company")

Amendment to guaranty agreement

Following the notice of EGM sent on September 12, 2013 the Company has amended  the guaranty agreement (the "Guaranty Agreement") further details of which were announced on September 12, 2013. The Guaranty Agreement now provides that, in the event that the Company receives written notification from the MTI Computers and/or the bank lending the funds to MTI Computers (the "Lender") that the loan is to be repaid pursuant to the terms of the loan agreement (and the Lender intends to use the Guaranty Agreement), the Company will call a meeting of its directors in order to declare on a dividend to shareholders of the Company in an amount that will enable MTI Computers to discharge the then outstanding balance of the loan without the Lender using the Guaranty. For the avoidance of doubt, any director appointed to the board of directors of the Company on behalf of MTI Computers, will be not be entitled to participate and vote on any such resolution.

No other changes were made in the agreement and the EGM will take place at the same date, time and place as announced on September 12, 2013.

Related party transactions

As at the date of this announcement, MTI Computers holds 27,031,897 Ordinary Shares, representing approximately 52.4 per cent. of the issued share capital of the Company. Accordingly, the above variation to the Guaranty Agreement is classified as a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.

The Company's directors (with the exception of Zvi Borovitz, Moni Borovitz and Zvi Kanor, who are directors in MTI Computers) having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the above variation to the terms of the Guaranty Agreement is fair and reasonable insofar as the Company's shareholders are concerned.

For further information please contact:

MTI Wireless Edge Dov Feiner, CEO Moni Borovitz, Financial Director	http://www.mtiwe.com/ [phone]
Allenby Capital Limited Nick Naylor Alex Price	[phone]
Newgate Threadneedle Graham Herring Robyn McConnachie	[phone]

About MTI Wireless Edge

MTI is engaged in the development, production and marketing of High Quality, Low Cost, Flat Panel Antennas for Commercial & for Military applications. Commercial applications such as: WiMAX, Wireless Networking, RFID readers &, Broadband Wireless Access. With over 40 years experience, supplying antennas 100KHz to 90GHz including directional antennas and Omni directional for outdoor and indoor deployments including Smart Antennas for WiMAX, Wi-Fi, Public Safety, RFID and for Base Stations and Terminals  - Utility Market. Military applications includes a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide.

 

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