LightwaveRF secures financing to conclude new product development

Connected devices and internet-of-things platform provider LightwaveRF announced on Friday it has entered into an agreement with its principal shareholder, Committed Capital Financial Services, for a loan of £150,000.

The AIM-traded firm said the loan is secured against anticipated research and development tax credits and carries a coupon of 1.25% per month.

Repayment is at the earlier of 12 months from the first drawdown or receipt of the tax refund for the year to 30 September.

There is also an arrangement fee of £6,000, and the loan is expected to be repaid within six months.

“This new short term funding will allow a quicker conclusion to the development of a new and further enhanced LightwaveRF link,” the company’s board said in a statement.

“This will further reinforce the open platform approach and allow the full integration with another leading device manufacturer for which work was originally announced early in 2015.

“This is in addition to that already announced with the Nest and IFTTT IoT platforms.”

LightwaveRF said the out-turn for the second half of the year ended 30 September is expected to be in line with the first half results.

“As previously announced, the company has been establishing a new distribution base moving from one to three UK distributors.

“This is a significant change in the company's distribution capability and reach [and] has caused some disruption to order flow during the second half but all three distributors are now placing repeat orders and reporting much improved market traction.”

It confirmed that its new retail distribution partner ERA Home Security Ltd, part of Tyman, has added Screwfix to the retailers that now carry the LightwaveRF offering.

“The company is also pleased to report the recent addition of a fourth distributor, Icon Heating, a specialist distributor of high efficiency boilers and heating control systems.

“This partnership has led to the LightwaveRF product range now becoming available at around 200 Graham The Plumbers' Merchant branches.”

The current order book currently stood at around £800,000, and it said it is now well placed with both its technology and distribution channels to make further progress in the new financial year.