Turbo Power Systems extends loan agreement and signs new contract

Turbo Power Systems, which describes itself as an innovative electrical machines and electronic systems provider, has extended its existing loan agreement with TAO Sustainable Power Solutions.

Turbo Power Systems, which describes itself as an innovative electrical machines and electronic systems provider, has extended its existing loan agreement with TAO Sustainable Power Solutions.

Separately, the company has also secured a commercial contract to assist Vale Solues em Energia (VSE), TAO's parent company, in a study of sub-sea power distribution concepts for the oil and gas market in Brazil.

The loan provided by TAO has been raised by £2.1m to a total of £8.02m, providing working capital in support of the company's trading while new contracts remain under negotiation.

The loan is repayable on April 1st 2014, and carries an annual interest rate of 6.0%.

Turbo added that it is continuing to consider a range of further options to address its financing requirements.

The agreement with TAO's parent company is worth £0.2m, and will see it work on the initial concept phase of a study into sub-sea power distribution for the oil and gas industry in Brazil, which is scheduled to run for a period of twelve months.

Turbo Power Chief Executive Officer, Carlos Neves, said: "Our relationship with VSE gives TPS a very real opportunity to penetrate the Oil & Gas market in Brazil, which is a key global target market for our technology and aspirations, as set out in our recent final results announcement.

"Whilst this contract is by itself modest, we are optimistic that it may lead to further work as the project progresses past initial concept phase.

"We are pleased that Tao continue to provide us with the financial support that our business requires as we continue to realign the company's focus and as we work to seize upon commercial opportunities such as that announced today."

The share price leapt 40.96% to 0.58p by 09:25.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021