Strategic Investment

RNS Number : 8160K

Brainspark PLC

28 August 2012

 



Embargoed until 7am                                                                                                        28 August 2012

Brainspark plc

("Brainspark" or "the Company")

Strategic Investment in Ascend Capital plc

Brainspark plc (AIM: BSP), the fast growing international investment company announces that it has issued 4,000,000 new ordinary shares of 2.5p at a price of 5 pence per share in relation to an investment in London based corporate broking firm, Ascend Capital plc.

Brainspark has acquired a 9.9 per cent. holding in Ascend Capital, which successfully completed two fundraisings for Brainspark, on 23 February 2012 and 3 April 2012, totalling £2.575 million. Alfredo Villa, Executive Chairman of Brainspark, will join the board of Ascend Capital as a Non-Executive Director. The Company will also use the offices of Ascend Capital as its London headquarters.

Information on Ascend Capital

Ascend Capital is a broker offering a variety of integrated funding solutions for smaller, fast growing companies. With a focus on both public and private companies, Ascend is one of the fastest growing institutional UK brokers, with access to a very wide source of financing, from mainstream UK and overseas institutions, family offices, private client stockbrokers and high net worth individuals.

Ascend Capital has completed six transactions since February 2012 and has raised in excess of £4 million during this period. It is anticipated that revenues should be approximately £1 million during the first year of operation. The firm is an appointed representative of Global Investment Strategy UK Ltd, which is anFSA registered firm and a member of the London Stock Exchange.

Alfredo Villa, Executive Chairman of Brainspark, commented, "As we seek to realise value from our existing investments and raise capital for new investments it is important that the Company has a strong relationship with a UK based capital markets firm. Ascend Capital has a proven track record and we look forward to working with them on the Company's investment strategy going forward".

It is expected that application for admission to trading on AIM ("Admission") will be made in due course, once the trading suspension in the Company's shares has been lifted.

Related party Transaction

Due to Justin Drummond's previous role as Executive Chairman of the Company, the investment in Ascend Capital plc is classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the directors of the Company, all of whom are independent for the purposes of this transaction, having consulted with the Company's nominated adviser, Westhouse Securities Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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For further information please contact:

Brainspark plc                                                                                                    [phone]

Alfredo Villa, Executive Chairman

Westhouse Securities                                                                              [phone]

Antonio Bossi

Jonathan Haines

Leander PR                                                                                               [phone]

Christian Taylor-Wilkinson

About Brainspark Plc

Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing leisure and real estate sectors mainly in Italy but also other European countries. The Company may be both a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.

 

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