3rd Jun 2005 15:00
ARC Risk Management Group PLC03 June 2005 ARC Risk Management Group plc Placing and Additional Listing ARC Risk Management Group plc (the "Group"), the AIM-listed provider of securityrisk management and training services, announces that it has completed afundraising of £320,000 (before expenses) through a Placing with Directors andother investors of 32,000,000 new ordinary shares at 1p per share. The monies raised will enable the Group to build momentum in the personalsecurity marketplace through its Red24 product to achieve market leadership. The past six months have seen a step change in customer demand driven by a needfor greater personal protection. As a result revenues from Red24 have more thantrebled in the year and since the year end a major insurance broker hascontracted to include membership, on a mandatory basis, in all their travelpolicies, which will give the Group over 100,000 additional members in the nextyear. In addition, World Nomads, the travel insurance provider to the LonelyPlanet series of guidebooks, will also be including membership within theirpackage. A key feature of the Red24 service is that it lends itself to tailoring to meetpotential customers' own security concerns. As a result, in the United Kingdom,where identity theft is perceived as a major and growing problem by bothindividuals and financial institutions, a new product called IDimposter has beendeveloped which provides advice to members both on how to avoid becoming avictim and also advice on what to do if the worst should happen. This has strucka chord with financial institutions and it is expected that IDimposter will beincluded in the premier/platinum account of a major institution shortly. Thiswill take the number of members to well in excess of 500,000 and ensure that theRed24 growth path is sustained. Application has been made for the 32,000,000 new ordinary shares to be admittedto trading on AIM and admission is expected to occur on 9 June 2005. Under the terms of the placing, a warrant to subscribe for 1 new ordinary sharewill be issued for every 2 shares taken up in the placing. The warrants will beexercisable at any time up to 31 March 2008 at a price of 1p per share. In the Placing, the Directors have subscribed for new ordinary shares asfollows: Director No. of placing New % of issued share shares shareholding capital after the placing Simon Richards 900,000 1,450,000 0.48%John Mocatta 1,000,000 1,500,000 0.49%Simon Wakeling 1,000,000 7,559,833 2.49%Mal Worsley-Tonks 500,000 1,500,000 0.49% In addition, Sidebell Ltd (a company in which Simon Richards has an interest)has subscribed for 7,500,000 new ordinary shares, thereby increasing itsshareholding to 47,692,500 ordinary shares representing 15.73% of the issuedshare capital after the placing. Simon Richards, Executive Chairman, commented: "We are pleased at the ongoing support and belief from our key investors whorecognise that ARC has turned a corner in its commercialisation plans. The newgroup structure, as alluded to in today's final results statement, has yieldedtangible results with a significant change in Group revenue growth and we lookforward to the future with increasing optimism." 3 June 2005 Enquiries: ARC Risk Management Group plc 0118 977 6696Simon Richards, Chairman Hansard Communications 0207 245 1100Nicholas Nelson/ Paul Foulger Seymour Pierce 0207 107 8000Jeremy Porter This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
REDT.L