26th May 2006 07:01
Hardide PLC26 May 2006 Press Release 26 May 2006 Hardide Plc ("Hardide" or "the Company") Placing of Shares Hardide Plc (AIM:HDD), the provider of unique surface engineering technologyannounces that it has conditionally raised £1.55 million (before expenses) forthe Company via a placing for cash of 12,386,832 Ordinary Shares of 1 pence each("Ordinary Shares") at 12.5 pence per share ("the Placing"). In addition,601,650 Ordinary Shares held by Dr Yuri Zhuk, Technical Director of Hardide, and8,598,350 Ordinary Shares held by Flintstone Management Services Limited ("FMS"), a subsidiary of Proventec PLC, have also been placed at the placingprice with institutional and other investors. The net receivable proceeds of the Placing will be used to fund the Company'scontinuing expansion. Mr David Chestnutt, non-executive Chairman of Hardide, is also a director ofFMS. FMS has undertaken not to dispose of any further Ordinary Shares withoutthe permission of the Company's broker, Daniel Stewart & Co plc, before 30November 2006. Application has been made for the admission of the 12,386,832 Ordinary Sharessubject to the Placing to be admitted to trading on AIM ("Admission"). It isexpected that Admission will take place on 1 June 2006. At Admission, theCompany will have 146,742,236 Ordinary Shares in issue. Jim Murray-Smith, Chief Executive of the Company, has subscribed for 200,000Ordinary Shares in the Placing. Following Admission, Mr Murray-Smith will havean interest in 428,000 Ordinary Shares, representing 0.27% of the issued sharecapital. Following Admission, Dr Zhuk will have a residual interest in 4,364,465 OrdinaryShares, representing 2.97% of the issued share capital. Following Admission, FMS will have a residual interest in 31,499,725 OrdinaryShares, representing 21.47% of the issued share capital. Commenting on the Placing, Jim Murray-Smith, Chief Executive of Hardide Plc,said: "The proceeds from the Placing will enable the Company to strengthen thesenior management team, underpin and accelerate expansion in the US. Initialindications from the US oil, gas and pump markets continue to suggest extremelyhigh demand for Hardide's unique products. The opening of our new manufacturingfacility in Houston is still on schedule for October 2006. We have been particularly encouraged by the strong demand from both existing andnew institutional investors and look forward to sharing Hardide's future successwith them. The Board remains confident of meeting market expectations for thefull year." For further information: Hardide plc Jim Murray Smith, Chief Executive Tel: +44 (0) 1869 353 830 [email protected] www.hardide.com Daniel Stewart & Company plc Paul Shackleton, Corporate Finance Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk Media enquiries: Abchurch Chris Lane / Katherine Murphy Tel: +44 (0) 20 7398 7700 [email protected] www.abchurch-group.com Notes to editors Hardide provides and applies tungsten carbide coatings to a wide range ofengineering components. The Company's patented technology is unique in that itcombines both abrasion and corrosion resistant properties in one coating. Whenapplied to components, the technology is proven to offer dramatic cost savingsthrough reduced downtime and extended component life. Customers include leadingcompanies operating in oil and gas exploration and production, valve and pumpsmanufacturing and general engineering. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hardide