Issue of Equity
10 July 2009 - 4:00PM
UK Regulatory
TIDMCINP
RNS Number : 4410V
Cinpart PLC
10 July 2009
10 July 2009
CINPART PLC
('Cinpart' or the 'Company')
Issue of Equity and Appointment of Joint Broker
Placing
Cinpart, the AIM-quoted electrical products manufacturer and supplier, is
pleased to announce that it has raised GBP775,000 before expenses from a placing
of 7,750,000 ordinary shares (the "Placing Shares") at 10 pence per share in the
capital of the Company (the "Placing").
The net proceeds of the Placing, amounting to approximately GBP730,000, will be
used to strengthen the Company's balance sheet and to advance, through the
appointment of additional sales personnel including a sales manager, the roll
out of VoltageMaster, the voltage optimisation product supplied through
its subsidiary Active Energy Limited ("Active Energy").
This further funding, which was largely provided by a UK institutional investor
and clients of a private client stockbroker, will assist the Company in
processing the increasing level of sales leads that have been generated to date
with a view to securing additional sales at the earliest opportunity to
supplement the GBP1.18 million contract announced on 15 June 2009.
In addition, the directors of Cinpart (the "Directors"), have subscribed, in
aggregate, GBP65,000, in the Placing for 650,000 new ordinary shares, equivalent
to 0.85 per cent. of the enlarged issued share capital following the Placing.
Furthermore, Stephen Coomes and Anthony Freudmann, both directors of Active
Energy, have also participated in the Placing; subscribing GBP45,000 for 450,000
new ordinary shares, representing 0.59 per cent. of the enlarged issued share
capital following the Placing.
Following the Placing, the Directors' shareholdings will be as follows;
+----------------------+-----------+------------+-------------+----------------+
| | Ordinary | Placing | Ordinary | Percentage of |
| | Shares | Shares | Shares | Enlarged |
| | currently | being | held | Issued Share |
| | held | subscribed | following | Capital Held |
| | | for | the Placing | |
+----------------------+-----------+------------+-------------+----------------+
| Philip Palmer | 3,081,808 | 400,000 | 3,481,808 | 4.57% |
| (Non-executive | | | | |
| Chairman)* | | | | |
| | | | | |
+----------------------+-----------+------------+-------------+----------------+
| Kevin Baker (Chief | 663,146 | 100,000 | 763,146 | 1.00% |
| Executive Officer) | | | | |
+----------------------+-----------+------------+-------------+----------------+
| Christopher Foster | 5,375,071 | 150,000 | 5,525,071 | 7.26% |
| (Executive Director) | | | | |
+----------------------+-----------+------------+-------------+----------------+
*A percentage of Philip Palmer's existing beneficial interest is held by
Consortia Trustees Limited, trustees of his family trust. 200,000 of the Placing
Shares are being subscribed for by Consortia Trustees Limited.
The Placing is conditional upon admission of the Placing Shares to trading on
AIM. Admission is expected to become effective and dealings are expected to
commence on 15 July 2009.
Following the Placing the Company will have 76,167,133 Ordinary Shares in issue.
Appointment of Joint Broker
The Company also announces it has appointed Mirabaud Securities LLP as its joint
broker, with immediate effect.
The Company has issued warrants over 232,500 Ordinary Shares to Mirabaud
Securities LLP as part of its fees in connection with the Placing. The warrants
are exercisable at 10 pence per share and are capable of exercise until 9 July
2011.
Kevin Baker, Chief Executive Officer of the Company, commented;
"We are very pleased to have raised GBP730,000, net of expenses, and by the
strong support demonstrated by our investors, both existing and new,
particularly considering the challenging economic environment. Since the
formation of our subsidiary, Active Energy, sales leads and enquiries regarding
our range of voltage optimisation equipment, the VoltageMaster, have increased
rapidly. The funds raised will greatly assist in bolstering our sales team as we
seek to convert our ever-growing leads into contracts as well as to further
develop the business to meet demand."
-ENDS-
Enquiries:
+--------------------------------------+--------------------------------------+
| Cinpart Plc | |
+--------------------------------------+--------------------------------------+
| Kevin Baker, Chief Executive | Tel: 020 3176 3033 |
| Christopher Foster, Executive | Tel: 020 3176 3031 |
| Director | |
| | |
+--------------------------------------+--------------------------------------+
| John East & Partners Limited, a | |
| subsidiary of Merchant Securities | |
| Plc (Nominated Adviser) | |
+--------------------------------------+--------------------------------------+
| John East/Simon Clements | Tel: 020 7628 2200 |
| | |
+--------------------------------------+--------------------------------------+
| Rivington Street Corporate Finance | |
| Limited (Joint Broker) | |
+--------------------------------------+--------------------------------------+
| Monisha Varadan | Tel: 020 7562 3389 |
| | |
+--------------------------------------+--------------------------------------+
| Mirabaud Securities LLP | |
| (Joint Broker) | |
+--------------------------------------+--------------------------------------+
| Rory Scott | Tel: 020 7878 3360 |
| | |
+--------------------------------------+--------------------------------------+
| Hansard Group (Public Relations) | |
+--------------------------------------+--------------------------------------+
| Vikki Krause | Tel: 020 7245 1100 |
| | |
+--------------------------------------+--------------------------------------+
About Cinpart:
Cinpart plc (AIM:CINP) is a designer, manufacturer and supplier of electrical
components. The Group owns a manufacturing facility in Thailand and operates
through its wholly owned subsidiaries Gasignition Limited; a supplier of
electrical components to small and medium-sized European gas appliance
manufacturers, Derlite Co Limited; an international manufacturer of electrical
and non-electrical components, and Active Energy Limited, the 65 per cent. owned
manufacturer and supplier of the VoltageMaster, a device that can reduce
electricity consumption in commercial buildings by up to 20 per cent.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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