31st Oct 2005 17:42
Creon Corporation PLC31 October 2005 Creon Corporation PLC 31 October 2005 Creon Corporation PLC Exercise of Option and Placing of Shares Creon Corporation PLC ("Creon" or the "Company"), the AIM traded provider ofmezzanine finance to the UK residential property development sector, todayannounces that, following the exercise of the previously announced optionagreement with Forestdale Trading Limited, it has placed 3,555,555 new ordinaryshares of 1p at 45p per share, raising gross proceeds of approximately£1,600,000. In addition the Company has issued a further 355,555 new ordinaryshares of 1p as payment of the commission due to Forestdale Trading Limited.Following the placing of all the new ordinary shares the Company will have atotal of 10,036,110 ordinary shares in issue. This placing of the new ordinary shares is as a result of the exercise of theoption agreement dated 10 November 2004 between Creon and Forestdale TradingLimited, the details of which were summarised in the Admission Documentpublished on 19 November 2004. Application for all the new ordinary shares to be admitted to AIM has been madeand it is expected that they will begin trading on AIM on 4th November 2005. Thenew ordinary shares will rank pari passu with the existing ordinary shares inissue. Jonathan Freeman, Director of Creon, commented: "We are delighted to havecompleted the exercise of this option agreement and the raising of significantnew funds. The profile and platform we have created has generated a very strongpipeline of potential new business and this extra injection of funds will enableus to provide Creon with attractive levels of return with acceptable levels ofrisk." Contacts: Creon Corporation PLCJonathan Freeman, Director Tel: +44 (0) 1600 750 432 Noble & Company LimitedAlasdair Robinson Tel: +44 (0)131 225 9677 Notes to Editors: Creon's continuing strategy is to provide mezzanine finance to small and mediumsized UK residential property developers. The business is underpinned by theexperience of the Directors and of its consultants, Creon Equity LLP, who havewide-ranging experience in this market. Creon has funded new business duringthe last 4 months in line with its aim of supporting property developers fordevelopments of between £1 million and £5 million with funding of amounts withinthe range of £250,000 to £750,000. The company is currently considering anumber of new opportunities that meet these parameters. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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