Issue of Equity

RNS Number : 4444P

Cinpart PLC

16 July 2010

 

16 July 2010

AIM: CINP

CINPART PLC

('Cinpart' or the 'Company')

Issue of Equity

Cinpart, which supplies cutting-edge voltage optimisation technology to reduce the energy consumption and CO₂ emissions of commercial buildings, is pleased to announce that it has completed a placing of 19,871,425 new Ordinary Shares (the "Placing Shares") at 7 pence per share in the capital of the Company (the "Placing").  The Placing, with institutional and other investors introduced by Jendens Securities Limited and Rivington Street Corporate Finance Limited, the Company's joint brokers, have raised a total of £1.39 million before expenses.

The net proceeds of the Placing amounting to approximately £1.32 million will be used to support the Company's sales and marketing efforts in the UK and to provide working capital generally in order to build on the progress made to date.  The Directors believe that there continues to be significant opportunities for growth, underpinned by the strengthening UK sales pipeline and Cinpart's relationships with Southern Electric Contracting Ltd ("SEC") and its new overseas partners.

The Placing Shares represent 18.6 per cent. of the enlarged issued share capital and following the issue of the Placing Shares, Cinpart will have 106,865,823 Ordinary Shares in issue.  The Placing is conditional upon admission of the Placing Shares to trading on AIM.  Application has been made for the new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on 22 July 2010.  The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares.

As part of the Placing the Company has granted warrants to Jendens Securities Limited over 304,286 new ordinary shares which are exercisable at the Placing price until 15 July 2012. 

Philip Palmer, Christopher Foster and Kevin Baker, directors of the Company, are subscribing in the Placing for 214,285, 285,714 and 142,857 Ordinary Shares respectively.

As a result of the Placing and following admission of the new Ordinary Shares the interests of the Directors will be:

Name	Number of Ordinary Shares	Percentage of enlarged issued share capital
Philip Palmer	3,753,632	3.51%
Christopher Foster	7,810,785	7.31%
Kevin Baker	906,003	0.85%

Kevin Baker, Chief Executive of Cinpart, commented;

"In a challenging economic environment for small cap companies we are very pleased with the support  we have received from both new and existing investors.  We believe that there are exciting opportunities available to us both in the UK and internationally and this placing will help us to deliver further growth going forward."

Enquiries:

Cinpart Plc
Kevin Baker, Chief Executive Christopher Foster, Executive Director	Tel: [phone] Tel: [phone]
Merchant Securities Limited (Nominated Adviser)
Simon Clements/John East	Tel: [phone]
Jendens Securities Limited (Joint Broker)
Kim Richardson	Tel: [phone]
Rivington Street Corporate Finance Limited (Joint Broker)
Peter Greensmith Jon Levinson	Tel: [phone]
Biddicks (Financial PR)
Sophie Lane	Tel: [phone]

About Cinpart plc

Cinpart is a holding company that owns 72.2 per cent of Active Energy Limited. Active Energy manufactures and supplies the VoltageMaster, a device that can reduce electricity consumption in commercial buildings by up to 20 per cent.

Other wholly owned subsidiaries in the Group include Derlite Co Limited; based in Thailand, this company is an international manufacturer of electrical and non-electrical components specializing in ignition systems for gas appliances and Gasignition Limited; a trading company supplying electrical components to small and medium-sized European gas appliance manufacturers.

About Active Energy

Active Energy owns the rights, intangible assets and intellectual property of VoltageMaster, a range of voltage optimisation equipment for commercial buildings that reduces voltage, and consequently energy consumed, by up to 20 per cent. The VoltageMaster, a sophisticated, easy to install device that is adaptable to complement existing infrastructures, optimises the voltage used in a building by adjusting the electricity voltage supplied to the whole building. In addition, the reduced energy consumption produced by the VoltageMaster provides reduced carbon emissions.

 

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