3rd Nov 2008 15:08
3 November 2008
Merchant House Group PLC ("MHG" or the "Company")
(GB 0000577386)
Further re issue of equity
The Board of Merchant House Group PLC announced on 30 September 2008 that it had placed 31,250,000 new Ordinary Shares of 0.5p each in the capital of the Company at a price of 1.2p raising in total £375,000 for the Company before expenses (the "Placing"). The Company stated further that of the £375,000 due pursuant to the Placing, £200,000 had been remitted to the Company on 30 September 2008.
The Company has now issued (as part of the Placing) 16,666,667 new Ordinary Shares of 0.5p at a price of 1.2p each (the "First Tranche Placing Shares") which has raised, as stated above, £200,000 for MHG. It has been agreed that for each of the First Tranche Placing Shares issued, a warrant shall also be issued which may be converted into one new Ordinary Share at a conversion price of 0.5p per warrant, exercisable at any time for a period of five years from issue.
Application has today been made to the London Stock Exchange for the admission of 16,666,667 new Ordinary Shares of 0.5p each to the AIM market of the London Stock Exchange, and dealings are expected to commence on 7 November 2008.
Additionally the Company announces that it has issued 5,056,881 new Ordinary Shares of 0.5p each at a price of 2p each in connection with the conversion of loan notes and exercise of rights. Application has been made today for these 5,056,881 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 7 November 2008.
Following the issue of the First Tranche Placing Shares and the shares in relation to the conversion of loan notes and exercise of rights, MHG's issued share capital is now 107,870,148. The Company does not hold any shares in treasury and there is no other class of share in issue which has voting rights. Consequently MHG's total number of voting rights is 107,870,148 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in MHG, under the FSA's Disclosure and Transparency Rules.
£175,000 remains due from investors under tranche two of the Placing. Once these monies have been received, the Company will issue a further 14,583,333 new Ordinary Shares to investors at a price of 1.2p each ("Second Tranche Placing Shares"). It has been agreed that for each of the Second Tranche Placing Shares to be issued, a warrant shall also be issued which may be converted into one new Ordinary Share at a conversion price of 1.2p per warrant, exercisable at any time for a period of five years from issue. Shareholders will be updated in due course.
The Company has been advised today that, following the issue of the Placing Shares, Liberty Capital Ltd will hold 9,870,074 Ordinary Shares equivalent to 9.2 per cent. of voting rights in the Company's Shares
Press enquiries:
Merchant House Group PLC
Martin Eberhardt
Tel: 020 7332 2200
Shore Capital and Corporate Limited
Pascal Keane
Tel: 020 7408 4090
Related Shares:
MHG.L