Share Placing and Issue of Eq

RNS Number : 0768A

Coms PLC

26 January 2011

 



26 January 2011

Coms plc

("Coms", the "Company" or the "Group")

Share Placing and Issue of Equity

Further to the placing announced on 20 January 2011 Coms plc is pleased to announce an additional placing of 9.5 million new ordinary shares of 1 pence each (the "Placing") in the share capital of the Company ("Ordinary Shares")  at a price of 2.25 pence per share. The Placing is to satisfy additional investor demand following the announcement of 20 January 2011.

The gross proceeds of the Placing are £213,750 which will be used by the Company to provide additional funds for possible acquisitions and fund the continued growth of the Company's existing operations.

The Board believes that whilst the proceeds of the placing announced last week are more than sufficient for the Company's current requirements, further investor interest triggered by the announcement led the Board to conclude that it may be opportune to strengthen further the balance sheet. These additional funds will further assist the Company in achieving its short term goal to grow reoccurring revenue streams from Internet Telephony and move into sustainable profitability.

The following Directors took part in the Placing:

Director	No. of new Ordinary Shares	No. of Ordinary Shares held following the Placing	% of issued share capital held following the Placing
Jason Drummond	500,000	25,876,819	30.22 %

Taken in aggregate with the previous placing, the issue of new Ordinary Shares to Jason Drummond (Executive Chairman of the Company and a substantial shareholder) is a Related Party Transaction for the purpose of AIM Rule 13.

Pursuant to AIM Rule 13, the directors (excluding Jason Drummond) consider, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, that the terms of the related party transactions with each of Jason Drummond and Justin Drummond are fair and reasonable insofar as the Company's shareholders are concerned.

The new Ordinary Shares which have been issued will represent approximately 11.09 % per cent. of the Company's enlarged issued share capital immediately following the Placing.

Application has been made for the new Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will be effective and that dealings in the shares will commence on 31 January 2011.

The Placing Shares will rank pari passu with the existing shares.

The Company's enlarged share capital immediately following the Placing will be 85,634,894 Ordinary Shares. 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.

Contact:

Coms plc

Richard Bennett                           [phone] 

Northland plc (Nominated Adviser and Broker)

Luke Cairns /Rod Venables             [phone]

 
XCAP Securities Limited (Broker)

John Grant / Karen Kelly              [phone]

Threadneedle Communications (PR)
Graham Herring                            [phone]

 

END

 

 

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