Issue of Equity

RNS Number : 7779H

Cholet Investments PLC

02 June 2011

AIM: CIP

2 June 2011

CHOLET INVESTMENTS PLC

("Cholet" or the "Company")

Issue of Equity

The Board of Cholet is pleased to announce that the Company has raised £150,000 (the "Placing") through the issue of 3,000,000 new ordinary shares in the capital of the Company at a price of 5 pence per share (the "Placing Shares") to certain new and existing investors. The proceeds of the Placing will be used for working capital generally. The Directors also believe that, following the results of the compulsory partial redemption and as announced on 31 March 2011, it would be advantageous for the Company to retain higher cash balances, making it a more attractive opportunity for potential acquisitions.

Roger Maddock and Brian Howard, both non-executive directors of the Company, have agreed to subscribe for an aggregate of 400,000 Placing Shares as part of the Placing. Following admission of the Placing Shares, Mr Maddock and Mr Howard will be interested in a total of 325,640 and 100,000 ordinary shares respectively, equivalent to 6.39 and 1.96 per cent. of the enlarged issued share capital of the Company, respectively. In addition, Andrew Gardiner, a Partner at Development Capital Management Limited ("DCM"), has agreed to subscribe for 416,000 Placing Shares. DCM acts as consultant to Cholet, seeking to identify and deal with prospective reverse takeover candidates on behalf of the Company. Mr Gardiner's subscription represents his entire holding in the Company and following admission of the Placing Shares, he will be interested in 8.16 per cent. of the enlarged issued share capital of the Company.

Due to the fact that Roger Maddock and Brian Howard are directors of the Company, their participation in the Placing constitutes a related party transaction as defined by the AIM Rules. The participation in the Placing by Andrew Gardiner is also deemed to be a related party transaction as defined by the AIM Rules, due to the consultancy arrangements between DCM and Cholet. Roger King, being the only independent director for the purposes of the Placing, having consulted with Merchant Securities Limited, the Company's nominated adviser, considers that the participations by Mr Maddock, Mr Howard and Mr Gardiner in the Placing are fair and reasonable insofar as Shareholders are concerned.