28th Jun 2016 13:22
LONDON (Alliance News) - Ultimate Sports Group PLC on Tuesday said it raised GBP500,000 through a share placing of 5.0 million shares at 10 pence per share with new and existing investors.
Shares in the company were untraded on Tuesday, last quoted at 23.50 pence.
The company, which invests in sports-related activities, said fund from the placing will be used to support the roll-out of its online platform for children, which measures, motivates and incentivises personal sporting performance, as well as for general working capital requirements.
Ultimate Sports said the placing was comprised of two tranches.
Dowgate Capital Stockbrokers Ltd has arranged to place 2.0 million shares at 10p per share to raise GBP200,000 before expenses. As part of this tranche, Chairman Richard Owen and Chief Executive Geoffrey Simmonds have both participated, each investing GBP50,000 for the subscription of 500,000 new shares each.
Following the placing, Owen will hold 1.9 million shares, 9.6% of the resultant issued share capital, and Simmonds will hold 2.1 million shares, 10.15% of the resultant share capital.
The second tranche is being handled by Northland Capital Partners Ltd, which has arranged to place a further 3.0 million new shares at 10p per share to raise GBP300,000 before expenses, Ultimate Sports said, noting that provisional approval has been obtained from HM Revenue & Customs for the Northland placing to qualify for Enterprise Investment Scheme relief.
The scheme is designed to help smaller and more high-risk companies raise finance by offering tax reliefs to investors who purchase new shares in the company.
Ultimate Sports said the participation by its chairman and chief executive are considered related party transactions, but, having consulted with its nominated advisor Cantor Fitzgerald, said its independent directors "consider the terms of the transactions to be fair and reasonable insofar as the company's shareholders are concerned".
"We are delighted to have raised GBP500,000 to continue the roll-out and development of our innovative sporting platform, Ultimate Player.me, which provides a secure and exciting way for children to improve their personal sporting skill sets. With an increasing number of government backed initiatives promoting healthier, more active lifestyles amongst children, there is undoubtedly a demand for our platform, which not only promotes engagement with sport but aims to encourage children to improve their fitness levels and sporting skills," said Simmonds.
By Hannah Boland; [email protected]; @Hannaheboland
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