19th Jul 2010 09:35
FOR IMMEDIATE RELEASE 19 July 2010
RAM INVESTMENT GROUP PLC
("RAM" or the "Company")
RAM INVESTMENT GROUP PLC RAISES £1.2 MILLION FROM CONVERTIBLE LOAN AND PLACING OF NEW ORDINARY SHARES
The Placing
The Board of RAM Investment Group plc ("RAM") announces that it has today completed a placing in order to provide funding for investment in TrainFX, RAM Vision and provide the Group with additional working capital.
The Company has placed 25,700,000 new ordinary shares of 1p each at a price of 4p per share to raise £1,028,000 before expenses, with institutional and exempt investors on behalf of clients. In addition the Company also announces the allotment if 3,750,000 new ordinary shares of 1p each at a price of 4p each in lieu of interest payable on loan and accrued advisory fees.
The new Ordinary Shares will, when issued, rank pari passu with the existing Ordinary Shares in issue and application will be made for 29,450,000 new Ordinary Shares to be admitted to trading on AIM. This is expected to be on 23rd July 2010.
On completion of the above transactions:
Tim Baldwin, Executive Chairman of the Company, participated in the placing and subscribed for 2,500,000 shares at the placing price of 4p. Following the placing he will have an interest in 8,029,438 Ordinary Shares, representing 7.32% of the issued share capital of RAM.
Convertible Loan
In addition, the Company has also raised £200,000 through the issue of a convertible Loan Note to Boldhurst Properties Ltd. The interest rate on the loan note is 12% per annum, compounded monthly.
So far as not converted, the principal amount of the Loan Note together with any interest due thereon would be redeemed on 7 November 2011 or at the option of the Company at any time before such date or at the election of Boldhurst Properties Ltd. following the breach by the Company of any conditions set out in the Loan Note.
The Loan Note is convertible into Ordinary Shares at a price of 6.5p each in the capital of the Company.
Executive Chairman Tim Baldwin comments:
"We are delighted to have secured this funding in such difficult financial markets for small companies. These funds will assist TrainFX to achieve profitability and enable the extension of our shopping mall digital media estate. The funds will also be used in part to discharge creditors and provide working capital for the Group."
For further information please call:
Tim Baldwin RAM Investment Group plc 0207 518 4303
Sandy Jamieson Libertas Capital Corporate Finance Limited 0207 569 9650
Peter Greensmith Rivington Street Corporate Finance Limited 0207 565 3350
Related Shares:
RAM.L