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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021