Rotala PLC
08 October 2007
Rotala plc
('Rotala' or 'the Company')
Placing to raise £465,000
New contracts
Exercise of warrants
The Board of Rotala is pleased to announce that it has raised £465,000 (before
expenses) through a placing of unsecured loan stock with warrants ('the
Placing').
The West Midlands Passenger Transport Executive (known as 'Centro') has recently
announced the award of contracts arising out of its latest tender round. The
Company is pleased to have been awarded a number of new routes in this round.
The Company has also been awarded an expansion of its existing contractual
arrangements with British Airways plc. In aggregate, these new arrangements are
expected to generate additional revenues of approximately £1.25 million per
annum.
The Placing announced today will provide for the further investment in both
vehicles and working capital required to service these latest contract wins.
The Directors remain committed to their stated strategy both in terms of the
integration of the acquisitions made by the Company over the past 12 months and
in the level of new business being generated by the Group as a whole which now
totals some £5.7 million for the year to date.
Details of the Placing and Exercise of Warrants
Rotala has placed £465,000 of fixed rate unsecured loan stock (the 'Loan Stock
'). The Loan Stock attracts interest semi-annually in arrears at a rate of 8%
per annum with the first payment being for the period from completion to 31
December 2007. The Loan Stock will not be listed. The Loan Stock will be
redeemed by the Company on 31 December 2009 or earlier, subject to the lender's
agreement. Ludgate Investments Limited has acted as placing agent for the
Company.
In addition, the Company has issued to the subscribers of the Loan Stock (on the
basis of 1 warrant for every £1 subscribed) an aggregate of 465,000 warrants to
subscribe for new ordinary shares in the Company at 65 pence per share at any
time up to 31 December 2009 (the 'Warrants'). Certain directors of the Company
have participated in the Placing to the extent of £315,000 of Loan Stock.
The Company has also been notified of the exercise of existing warrants over, in
aggregate, 225,199 new Ordinary Shares at an aggregate subscription price of
£88,250. These warrants have been exercised by John Gunn and his related parties
at prices ranging from 25p to 62.5p per share.
Details of the revised interests of the directors in the ordinary share capital
of the Company following the Placing and exercise of warrants are set out below:
Following the Placing:
Ordinary Shares % of Issued Share Warrants Total loan
held (excluding Capital stock ***
options)
John Gunn * 5,050,924 24.9 344,134 £340,000
Geoffrey Flight * * 990,333 4.9 96,889 £75,000
Kim Taylor 20,000 0.1 25,000 £25,000
* includes Mrs R. S. Gunn, Wengen Pension Plan and the Gunn Trusts.
** includes the Flight Pension Trust of which Mr Flight is a beneficiary.
*** includes loan stock issued in December 2006 and through the Placing.
Share Capital
Following the exercise warrants announced today, the Company's issued voting
capital consists of 20,295,779 ordinary shares of 25p each. The Company holds no
shares in Treasury.
Contacts:
John Gunn, Chairman Rotala plc 020 7621 5770
Kim Taylor, CEO Rotala plc 020 7621 5770
Romil Patel, Blue Oar Securities Plc 020 7448 4400
This information is provided by RNS
The company news service from the London Stock Exchange
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