Information  X 
Enter a valid email address

Veos PLC (VEO)


Wednesday 03 April, 2002

Veos PLC

Issue of Equity

Veos PLC
3 April 2002

                       Veos plc ('Veos' or the 'Company')

                   Terms agreed for Equity Line of up to £2m

The Board announced on 7 March 2002 that discussions were progressing with
potential investors.

The Board today announced that it has signed Heads of Terms with Cornell Capital
Partners Offshore Fund LP ('Cornell'), a Cayman Islands based investment fund,
to provide Veos with an equity line of up to £2 million, subject to certain
conditions. Under this agreement, Veos will have the right to require Cornell to
subscribe for new Veos 10p ordinary shares in installments of up to £35,000
every 7 trading days regardless of Veos' trading volume. Following completion of
the agreement, draw down under the equity line will, however, depend on the bid
price for Veos ordinary shares reaching and maintaining in any given 5
consecutive trading days at a level of at least 10.6p. Once the Equity Line has
been fully drawn down, a commitment fee of 1 million new ordinary shares will be
payable to Cornell. The draw downs will be restricted such that at no time will
Cornell's shareholding in Veos exceed 29 per cent. of the then issued share
capital of the Company. Application will be made for the resulting new ordinary
shares to be admitted to trading on the Alternative Investment Market of the
London Stock Exchange. On allotment, the shares will rank pari passu with
existing ordinary shares of the Company.

As announced on 7 March 2002, negotiations are continuing to advance with the
two international investors, who made the small subscriptions on 2 January 2002
and 6 March 2002, respectively, to make further investments in the Company.

Paul Lever, the Chairman of Veos, said:

'We are delighted with this agreement. £2 million represents sufficient capital
for the Company to advance its business plan. With the funds from Cornell the
Company will continue to develop the market for its Oves contraceptive cap in
the UK, progress clinical trials with a view to securing FDA approval for Oves
and seek collaborative partners for drug delivery applications of its core

We will continue to negotiate terms to secure the further funds the business
needs to achieve its objectives. Following draw down of the Cornell line, we
intend to progress a 20-F filing with the Securities & Exchange Commission in
the US and believe that a listing of the Company's ADRs in the US will provide
improved liquidity in our shares, which has been sorely lacking over recent
months. '

Philip Ho, Vice President of UK Capital Markets of Cornell, stated, 'We are
excited to be working with Veos and assisting from a financial prospective. We
are confident in Veos' management team and look forward to participating in its

Cornell, is a Cayman Islands based hedge fund that specializes in financing
publicly-traded companies on the London Stock Exchange.

Contact details:

Paul Lever          Chairman, Veos plc          020 7960 6066

Paul Lewakowski     President, Veos Inc.          001 847 735 0003

                      This information is provided by RNS
            The company news service from the London Stock Exchange

a d v e r t i s e m e n t