Proposed Capital Reduction & Notice of GM

RNS Number : 4133W

Regenersis PLC

07 November 2014

7 November 2014

REGENERSIS PLC

("Regenersis" or the "Company")

PROPOSED CAPITAL REDUCTION AND NOTICE OF GENERAL MEETING

Regenersis plc, a strategic outsourcing partner to many of the world's largest technology brands, announces that it will today be posting a circular to shareholders, which sets out a recommended proposal by the Board to increase the distributable reserves of the Company (the "Circular").

The proposals, which comprise a capital reduction, are conditional upon, amongst other things, the Company obtaining appropriate shareholder approval at a General Meeting.

Background

Since 2011, the Company has undergone a rapid period of expansion. In order to execute its growth strategy, distributable reserves have been utilised, amongst other things, to fund the costs associated with merger and acquisition activity undertaken by the Group. Over the same period, the amount held in the share premium account has increased significantly as a result of the Company issuing shares at a premium to their nominal value.

As a result, the Company's accounts for the year ended 30 June 2014 show it to have an accumulated profit on its distributable profit and loss account of £3,490,000 and a balance on its share premium account of £121,737,000.

A share premium account is an undistributable reserve and, accordingly, the purposes for which the Company can use it are extremely restricted. In particular, it cannot be used for paying dividends or undertaking share buybacks.

The Board is therefore recommending that a proportion of the amount held in the share premium account be reduced and transferred to the Company's profit and loss account to create further positive distributable reserves, in order to give the Board the flexibility to distribute profits to shareholders as dividends, or possibly by way of share buybacks, if it is considered appropriate at the time.

The Circular contains a Notice of General Meeting which will be held on 26 November 2014, the same day as the Company's Annual General Meeting.

The Circular and Notice of General Meeting will be available on the Company's website later today.

Enquiries:

Regenersis Plc +44 (0) 20 3657 7000

Matthew Peacock, Executive Chairman

Jog Dhody, Chief Financial Officer

Panmure Gordon (UK) Limited (Nomad and Joint Broker) +44 (0) 20 7886 2500

Dominic Morley, Corporate Finance

Charles Leigh Pemberton, Corporate Broking

Cenkos Securities (Joint Broker) +44 (0) 20 7397 8900

Stephen Keys, Corporate Finance

Alex Aylen, Sales