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Pebble Beach strikes settlement deal with xG

By BFN News | 02:13 PM | Monday 20 March, 2017


Pebble Beach has announced that it has come to an agreement with xG Technology whereby the outstanding Deferred Consideration of $4.9m due from xG has been settled in full by a cash payment of $2m and the release of the $125k in escrow from the Initial Payment. The Company confirmed that there will be no further liability by the Company to xG or in respect of VCS, except for the remaining 3 year lease obligations at Hemel Hempstead, amounting to approximately £1.2m. This remained a liability of the Company under the original Business Purchase Agreement. xG and the Company will continue to work together to recover by 30 September 2017 the $2m due to the Company in respect of one debtor, as outlined in the announcement of 16 January 2017. The Board considers that there is significant benefit to the Company by the removal of uncertainty relating to the sale of VCS. As a result of the receipt of $2.125m referred to above, and the previous arrangements where part of the Deferred Consideration due from xG was settled by xG settling VCS creditors which remained with the Company, the Company has been able to reduce its net debt from £17m to approximately £12m. The Board remains in regular dialogue with its bank, who remain supportive. At 2:13pm: (LON:PEB) Pebble Beach Systems Group Plc Ord 2.5p share price was +0.25p at 6.25p Story provided by StockMarketWire.com

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