Turbo Power Systems extends loan agreement and signs new contract

2nd Apr 2013 08:54

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 Soluções 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