26th Jan 2010 07:00
Earthport plc ("Earthport") or (the "Company")
Franchise Fee and Placing
Further to the announcements made by the Company on 22 December 2009 and 20 January 2010, the Company is still to receive the outstanding non-refundable first-year franchise fee of £3.25 million due from Zink Financial S A ("Zink").
While the Company remains in constructive discussions with Zink, and the Directors continue to be confident that the franchise fee will be received, the Directors have considered means by which the Company can provide for its working capital needs.
The Company is therefore pleased to announce a placing with institutional investors and Directors of up to 7,000,000 new ordinary shares in the Company ("Placing Shares") at 12.5 pence per share ("Placing Price"). The proceeds of the placing will be used for working capital purposes.
The final number of shares to be issued will be determined and announced later today.
Details of the Placing
The Company is proposing to raise up to £875,000 by the issue of the Placing Shares at the Placing Price. The maximum number of Placing Shares which may be issued represents approximately 7.3 per cent. of the enlarged issued share capital of the Company.
Certain Directors have agreed to participate in the Placing as follows:
Name No of Placing Shares
Mike Harrison, Chairman 1,200,000
Zafar Karim, Finance Director 400,000
Peter Chappell, Executive Director 280,000
The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares. Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 3 February 2009. The Placing is subject to Admission.
The Placing is only being made (i) in the UK to persons falling within article 19 and article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and who are also qualified investors for the purposes of section 86 of FSMA and (ii) in other jurisdictions in strict compliance with securities laws applicable therein, and no other person may participate in the Placing or rely on any communication relating to it. The offer of the Placing Shares has not been, and is not being, made to the public for the purposes of the Prospectus Rules. This announcement does not constitute an offer, or the solicitation of an offer, to subscribe for or buy any of the Placing Shares.
- ENDS -
For further details, please contact:
|
Panmure Gordon Dominic Morley / Adam Pollock |
+44 (0)20 7459 3600 |
|
Financial Dynamics Jonathon Brill / Alex Beagley |
+44 (0)20 7831 3113 |
Panmure Gordon is acting for the Company only in connection with the Placing, and no one else, and will not be responsible to anyone other than the Company for providing the protections offered to clients of Panmure Gordon nor for providing advice in relation to the Placing.
Related Shares:
Earthport