12th May 2006 14:00
Release date: 12th May 2006For Immediate Release CLS HOLDINGS PLC ("CLS") ANNOUNCES THAT IT HAS ACQUIRED FURTHER SHARES IN LUNARWORKS AB CLS announces that it has acquired further shares in Lunarworks AB("Lunarworks"), increasing its shareholding from 5,016,650 shares, representingapproximately 47.2 per cent of the issued share capital, to 10,324,000 shares,representing approximately 97.07 per cent of the issued share capital. Theseshares have all been acquired at a price of SEK 35 per share (‚£2.59) whichvalues Lunarworks at approximately SEK 372 million (‚£28 million). The cost ofthe entire investment for CLS is ‚£16.9 million, providing an annual return ofover 10%.As a result of these acquisitions, CLS is able to compulsorily acquire theoutstanding shares not already owned by it.Sten Mortstedt, Executive Chairman of CLS, owned 665,150 ordinary shares inLunarworks representing approximately 6.3 per cent of the issued share capitaland he has accepted the offer from CLS on the same terms as offered to allother shareholders.Lunarworks is a private Swedish company which was established in 1999 as astart-up, in which CLS first invested in 2000. It is an internet-based youthcommunity generating revenues from advertising and membership fees andservices. In the year to December 2005, it produced revenues of ‚£5.2 millionand generated EBITDA of ‚£1.9 million from ongoing operations. Lunarworkslaunched its UK operation successfully in November 2005. Earnings from ongoingoperations grew by more than 30 per cent in 2004 and by 156 per cent in 2005.Earnings are 48 per cent higher in the first quarter 2006 compared to the sameperiod last year. Cash at bank at 31st December 2005 amounted to ‚£2.6 million.Sten Mortstedt commented:"Lunarworks has grown successfully, is well capitalized and profitable. It isnow, expanding internationally and is already generating a good return oninvestment. CLS has rationalised its portfolio of investments significantlyover the last two years and we believe this opportunistic acquisition of theoutstanding shares of Lunarworks will provide a good return to our shareholdersin the future." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerSteven Board, Chief Operating OfficerCLS Holdings plcwww.clsholdings.comTel. +44 (0)20 7582 7766Adam Reynolds/Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDCLS HOLDINGS PLCRelated Shares:
CLS Holdings