Director Buy -- Placing

RNS Number : 3848Z

Pinnacle Telecom Group PLC

15 March 2012

 



15 March 2012

Pinnacle Telecom Group plc

("Pinnacle" or the "Company")

Placing to raise £365,000

Director/PDMR Shareholdings

Pinnacle Telecom Group plc, (AIM: PINN) the AIM listed provider of converged managed services, is pleased to announce that it has successfully raised £365,000, before expenses, by way of a placing of 121,666,667 new ordinary shares of 0.1p each in the capital of the Company ("new Ordinary Shares") at 0.30p ("Placing Price") per new Ordinary Share (the "Placing").

The new Ordinary Shares will rank pari passu with other ordinary shares and application has been made for the new Ordinary Shares to be admitted to trading on AIM, which is expected to be on 21 March 2012.

The Company has been informed that Alan J Bonner, Chief Executive Officer participated in the issue, as follows:

Director Name	Number of new Ordinary Shares acquired	Aggregate interests following completion of the Placing	Following the Placing, Percentage of the enlarged Share Capital
Alan J Bonner	20,000,000	221,389,150	10.01%

The Director's participation in the Placing is a related party transaction under the AIM Rules. Zeus Capital, the Company's nominated adviser, has advised the independent director that it considers that the terms of the transaction are fair and reasonable insofar as the Company's Shareholders are concerned.    

The Company has also been advised that Tom Black, the former CEO of Detica PLC, a major provider of security, intelligence and analysis solutions, and current Executive Chairman of AIM Listed Digital Barriers plc, has subscribed personally for 14,400,000 shares in the Placing, increasing his holding to 3.24% of the enlarged share capital of the Company.

Following the Placing, the issued share capital of the Company will increase by 5.82% to 2,211,474,397 ordinary shares in issue. 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, the share capital of the Company under the Disclosure and Transparency Rules (as applied to the Company by AIM Rule 17).

Commenting on the Placing, Alan Bonner, CEO of Pinnacle, said:  "As the Company continues to grow, the proceeds raised will provide working capital to pay for upfront costs associated with Olympic Games contracts, help accelerate the Company's cross-selling strategy, final one-off post acquisition costs and will strengthen the Company's balance sheet. I would also like to thank Tom Black for his continued support."

AGM

Shareholders are reminded that proxy forms for the Seventh Annual General Meeting of the Company need to be returned to Computershare no later than 27 March 2012.

All Company announcements & news can be found on http://www.pinnacletelecomgroup.co.uk

For further information please contact:
Pinnacle Telecom Group plc
Alan J Bonner, Chief Executive	0845 180 74 74
Zeus Capital Limited
Ross Andrews/Paul Horrocks	0161 831 15 12
Rivington Street Corporate Finance Limited
Jon Levinson & Peter Greensmith	0207 562 33 89

Notes to editors

About Pinnacle

Pinnacle Telecom Group plc (AIM: PINN) Pinnacle Telecom Group plc focuses on the business market across the UK. Driven by leveraging organic opportunities as well as through targeted acquisitions, we provide a wide range of converged managed solutions including Managed Support Services, Unified Communications and Collaboration, Communications and Mobility, Software as a Service (SaaS) and Infrastructure services.

Pinnacle is a fully licensed Public Telephone Operator, has its own telephone network and interconnects with BT, Virgin Media and THUS. It has its own hosted voice (VoIP) platforms and engineers and owns Scotland's oldest ISP (and a founder member of Nominet), operating from its data centres in Glasgow, London and Brighton. 

The Group has grown revenues 740% since 2007 and aims to build a £50m business, by leveraging organic opportunities as well as through targeted acquisitions. We create solutions that join together a company's three core networks (IT network, telephony network and mobile network). Our strategy of cross-selling the five elements of our converged managed services offering is now delivering positive results. 

 

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