Issue of Equity, etc.
Ideal Shopping Direct PLC
8 August 2001
Ideal Shopping Direct Plc
Placing of 9,250,000 new ordinary shares at 40 pence per share
raising £3.7 million before expenses
Ideal Shopping Direct Plc (the 'Company') is pleased to announce the successful
placing of 9,250,000 new ordinary shares at 40 pence per share which will rank
equally with the ordinary shares currently in issue. peel hunt plc acted as
broker to the placing. Net of costs and commissions, estimated at £200,000 in
aggregate, the placing raises cash resources for the Company of £3.5 million.
Following a disastrous fire at the Company's premises, trading in the Company's
securities was suspended on 7 March 2001. Following this fundraising the
Company's entire issued share capital, including the 9,250,000 new ordinary
shares which have been placed for cash, will be reinstated to trading or
commence trading (as appropriate) on the Alternative Investment Market of the
London Stock Exchange ('AIM') on 9 August 2001.
The new ordinary shares have been placed with both existing institutional and
new investors. Paul Wright, Chairman and Chief Executive, will following the
fundraising have an interest in 9,900,000 or 34.1 per cent. of the enlarged
issued share capital of the Company. Val Kaye, Commercial Director, subscribed
for 250,000 new ordinary shares at 40 pence per share as part of the placing
taking her total interest in the Company to 5,200,000 ordinary shares or 17.91
per cent. of the enlarged issued share capital of the Company following the
placing. Paul Jephcott, Finance Director, subscribed for 2,500 new ordinary
shares at 40 pence per share as part of the placing taking his total interest in
the Company to 7,500 ordinary shares or 0.03 per cent. of the enlarged issued
share capital of the Company following the placing.
Commenting on the successful fundraising, Paul Wright, Chairman and Chief
Executive of Ideal Shopping Direct Plc, stated:
'We are delighted with the success of the fundraising which has been achieved in
difficult market conditions. Since the Company recommenced transmission on 23
March 2001, just over two weeks after the fire destroyed all of our broadcasting
facilities, over 40,000 new customers have been attracted to the channel. Month
on month sales remain encouraging despite the fact that the Ideal World TV
business continues to operate from temporary premises. With the continued
support of our insurance company and bankers, we anticipate the rebuilding of
new headquarters and broadcasting facilities to commence shortly with occupation
planned to occur in the middle of next year. The fundraising will allow the
Company to continue to fund the growth of the Ideal World TV business and firmly
establish the Ideal World shopping channel as a leader in innovative TV home
shopping in the UK.'
Contact:
David Simonson, Merlin Financial 020 7606 1244
Paul Jephcott, Finance Director 08700 780704
Gerry Beaney, Grant Thornton 020 7383 5100
Adam Hart, Peel Hunt plc 020 7418 8900
Dated: 8 August 2001
Notes for Editors:
Ideal Shopping Direct Plc operates the Ideal World home shopping channel
available on digital satellite on channel 638. The Company floated on AIM in
February 2000 and started broadcasting in April 2000. By December 2000, Ideal
World had acquired 120,000 customers. A fire destroyed the Company's TV studios,
warehouse and offices in March 2001.
End.