Flowgroup in manufacturing agreement with Jabil

Under the agreement, Jabil will manufacture up to 390'000 Flow boilers, funding production working capital. Jabil will assist Flowgroup with the ongoing design of an economical and effective supply chain as well as logistics and other support for international expansion in due course. Flowgroup also has the option, conditional on admission, to draw down a loan of up to GBP 2.5m until 31 December 2014, which is secured on the group's Flow boiler intellectual property on an insolvency event, with a coupon of 9.5% per annum. Repayments would commence on 1 October 2015. The directors do not envisage drawing down on the loan.