Placing

RNS Number : 2023K
Mountfield Group plc
26 July 2013
 



Mountfield Group Plc

 

("Mountfield or "the Company")

 

Placing to Raise £450,000 to fund contract wins and postponement of redemption of loan notes.

 

 

Mountfield, which specialises in the fitting-out of Data Centres is pleased to announce that it has placed 45,000,000 new ordinary shares of 0.1p each ("Shares") representing approximately 17.71% of the Group's enlarged issued share capital ("the Placing").

 

The Placing has been undertaken to provide the Group with additional working capital to help it to finance its increasingly strong order book.

The new Shares have been placed with institutional and private investors (including a number of EIS investors) at a price of 1p per share to provide gross proceeds of £450,000 and the issue of them is conditional, inter alia, on approval being granted by shareholders at the Annual General Meeting on 29 July 2013 of a resolution granting the Directors authority to issue new Shares.

The new Shares will, when issued and fully paid, rank pari passu in all respects with the Company's existing Shares. Application will be made for the 45,000,000 new Shares to be admitted to trading on AIM and admission is expected to become effective on or around the 1 August 2013.

Following admission of the new Shares, the Company will have 254,244,454 Shares in issue. The Company has no Shares in treasury. Therefore the figure of 254,244,454 should 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 in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

At the time of the admission of the shares in the Company to AIM in October 2008 Graham Read and Andrew Collins ("Vendors") were issued with a total of £5,500,000 in interest bearing loan notes that were due to have been redeemed in October 2011. In June 2011 the date for the redemption of the outstanding loan notes was postponed to June 2016 and the Vendors have now agreed with the Company that the redemption of outstanding loan notes will be deferred to June 2020 and that in the meantime the holders will continue to waive payment of the interest that would otherwise have been payable pursuant to the terms of the loan notes. This deferred repayment and waiving of interest payments is a related party transaction under Rule 13 of the AIM Rules for Companies. Peter Jay (being the only independent Director) considers, having consulted with the Company's Nominated adviser, that the terms of this transaction are fair and reasonable insofar as Shareholders are concerned.

 

Graham Read, the Group Chief Executive said:

"We welcome the Placing as it provides the Company with additional working capital to finance the strong upturn in the levels of its business in the fit-out and the supply and installation of raised access flooring for Data Centres and also our expanding business in fitting-out offices and hotels and other quality construction activities. In addition it also brings some excellent new shareholders into the Company.

The decision to defer redemption of the loan notes and to waive the interest payments reflects the Directors' optimism for the future of the Company and their wish that increased profitability is followed by the Company beginning to pay dividends on its ordinary shares."

 

Contacts:

 Mountfield Group Plc

Graham Read, Chief Executive Officer                                       01268 561 516

 

WH Ireland Limited (Nominated  adviser)

Chris Fielding, Head of Corporate Finance                                020 7220 1650

James Bavister, Corporate Finance Executive

 

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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