18th Jan 2011 17:25
For immediate release: 19 January 2011
KINGSWALK INVESTMENTS LIMITED ("Kingswalk" or "the Company") ACQUISITION AND ISSUE OF SHARES
Kingswalk Investments Limited (AIM: KWI) the strategic investment company today announces that it has raised £800,000 before expenses through the issue of 40,000,000 new ordinary shares of 1 pence each in the capital of the Company ("Subscription Shares") via a subscription at 2 pence per Subscription Share with existing and new shareholders ("Subscription"). Conditional upon completion of the Subscription, Kingswalk today also announces that it has agreed to acquire the entire issued share capital of Combined Management Services Ltd ("CMS") for £40,000 payable in cash ("Acquisition").
In line with the Company's broad investments strategy as, approved by its shareholders, the directors intend to invest the net proceeds in private and quoted companies across a wide range of sectors, including financial services, support services and resources. The expected investment size is likely to be between £100,000 and £250,000 and the Company anticipates undertaking a more activist investment style, with the aim of recycling funds invested at the earliest opportunity.
CMS is a UK based management and corporate consultancy providing solutions to private and quoted companies. Set up in 2005, CMS generated turnover of more than £500,000 in the year ended 31 December 2010 and profits of approximately £ 10,000 in the same period. As at 31 December 2010, CMS had net assets of approximately £75,000.
Kingswalk has also created a new warrant instrument which allows the Company's directors ("Directors") to grant up to 25,000,000 warrants over new ordinary shares of 1p in the Company ("Ordinary Shares") with an exercise price of 2 pence per Ordinary Share and a 5 year exercise period ("2011 Warrant"). The 2011 Warrant has been created as an incentive and retention solution for senior staff and consultants.
Separately, the Company is also pleased to announce that 1,500,000 new warrants have today been issued under the 2011 Warrant to newly appointed consultants and investment advisers to the Company. These advisers include Daan van Den Noort, a director of the Company, who has today received 500,000 warrants. Warrants issued by the Company in June 2010, as part of its financial restructuring, have been cancelled.
Application has been made for the Subscription Shares to be admitted to trading on the AIM market of the London Stock Exchange and trading in the Subscription Shares is expected to begin on 24 January 2011.
Following admission of the Subscription Shares, the Company's issued ordinary share capital will comprise 93,171,673 Ordinary Shares. All of the Company's Ordinary Shares carry voting rights and this will be the figure which may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the issued share capital of the Company.
Paul Everitt, Director of Kingswalk commented:
"We are delighted to have received such strong support from our existing and new shareholders for the Subscription. The Subscription provides the Company with fresh capital to take advantage of investment opportunities in the micro and small cap arena.
"The Acquisition of CMS is an exciting one for Kingswalk, following soon after our significant investment into Vermeesch in September 2010. The Directors believe CMS's professional offering is in high demand and we look forward to supporting its aggressive growth plans during the coming years."
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For further information please contact:
Kingswalk Investments Limited
Paul Everitt+44 (0) 14 8173 2888
Daniel Stewart & Company Plc
OliverRigby +44 (0)20 7776 6550GTH Communications TobyHall +44 (0)20 3103 3903ChristianPickel +44 (0)20 3103 3902
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Kingswood H.