Issue of Equity

RNS Number : 3045Z

Socialgo plc

12 January 2011

 



Press Release	12 January 2011

SocialGO Plc

 ("SocialGO" or the "Company")

Issue of Equity

Successful Placing to raise £300,000

SocialGO, the AIM-quoted developer and provider of software which allows groups to build their own on-line social networks, announces today that the Company has issued, subject to admission to trading on AIM,  10,909,091 new ordinary shares of 1 pence each ("Ordinary Shares"), representing approximately 2.8 per cent. of the Company's enlarged issued share capital.

The Ordinary Shares have been placed with institutional investors at a price of 2.75 pence per share, for a gross consideration of £300,000 (the "Placing"). First Columbus acted as broker in connection with the Placing.

The net proceeds of the Placing will be used to provide additional working capital for the Company as it approaches deployment of SocialGO™ version 2.

Commenting on today's news, Alex Halliday, CEO stated:

"The Board is pleased to have been able to take advantage of demand for our shares, so as to provide incremental funding for the next stage of the Company's development as well as providing increased liquidity. We have recently announced the introduction of Version 2 of SocialGO (www.sgv2.com), our next generation platform, scheduled to be launched shortly for beta testing with full deployment later this year.

We now have thousands of networks, with millions of members, across a wide range of groups, in particular from the U.S.A. Whilst most of these organizations are small, we are seeing an increase in usage and interest from major brands and companies, including Levi's, Asda, Random House, Apple, Big Lotto and Hilton Hotels. The SocialGO™ platform also extends to politics including a network for the leading French politician Dominique de Villepin and in the UK, an initiative with the Government's 'Big Society' drive. This diversity of application of the platform demonstrates the flexibility of the product and the extent of uses to which it can be put.

The Board believes that the next big area of social networking growth will be inside the websites of groups, businesses and individuals, as they seek to pull together many social media services like Facebook and Twitter into their own site, on their own terms. This is now possible in 2011, with growing consumer awareness and increased openness of the big social networks.

We see ourselves at the forefront of this new industry and part of the wave of new products that show people how social media can benefit communities across the world. We look forward to providing further updates of our progress over the next few months."

The Ordinary Shares to be issued will rank pari passu with the existing ordinary shares of the Company. Application has been made for the new Ordinary Shares to be admitted to trading on AIM, and it is expected that such admission will become effective and dealings will commence in respect of 7,272,727 Ordinary Shares on 14 January 2011 and, in respect of 3,636,364 Ordinary Shares, on 25 January 2011.

- Ends -

For further information, please contact:

SocialGO plc
Dominic Wheatley, Chairman	Tel: [phone]
	www.socialgoplc.com

Canaccord Genuity Limited
Mark Williams / Christopher Fincken	Tel: [phone] www.canaccordgenuity.com
First Columbus
John Nuttall / Chris Crawford / Kelly Gardiner	Tel: [phone]
	www.first-columbus.com

Yellow Jersey PR Limited
Dominic Barretto	Tel: [phone] www.yellowjerseypr.com

About SocialGO

SocialGO Plc is a developer and provider of software as a service which allows groups to build their own online social networks, SocialGO™.  SocialGO's software allows customers to quickly and easily create, manage and control their own private social network and provides the members of these networks with the ability to communicate and share with like minded people in a controlled and secure environment.  SocialGO derives its revenues from subscription premiums paid by network owners and from selling value added services which allows network owners to maximise the social networking experience and the revenues that can derive from creating and managing a social network.  SocialGO is part of the burgeoning Silicon Roundabout in London, UK.

 

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