Placing, Issue of Equity and Total Voting Rights (7916B)
24 February 2011 - 9:16PM
UK Regulatory
TIDMFAN
RNS Number : 7916B
First Artist Corporation PLC
24 February 2011
FIRST ARTIST CORPORATION PLC
("First Artist" or "the Company" or "the Group")
Placing
Issue of Equity
Total Voting Rights
First Artist Corporation plc (AIM: FAN) is pleased to announce
that it has placed a total of 10 million new ordinary of 2.5 pence
each (the "Placing Shares") at a price of 20 pence per share (the
"Placing Price") to raise GBP2 million before expenses (the
"Placing"). The Placing is conditional upon admission of the
Placing Shares to trading on AIM.
The net proceeds from the Placing, representing new investors
from the UK, will be used to reduce debt and for working capital.
This is part of the Company's strategy to de-leverage the Group and
enable Pivot to commence a re-positioning of the Group's
businesses.
The net proceeds of the fundraising will not provide the Company
with sufficient working capital to satisfy its requirements without
further access to capital or the extension of the Company's
existing facility with Allied Irish Bank (GB), subject to the
waiver of certain financial covenants and the satisfaction of
certain conditions.
The Company is in discussions with potential strategic investors
to meet the working capital requirements of the Company. As
previously stated in the announcement made on 8 December 2010, it
is the Company's intention to replace the existing bank facility
with a GBP14,500,000 revolving credit facility (the "New
Facility"). The terms of the New Facility are preferential to the
charges currently being incurred under the existing facility. The
Company's interest charges will be reduced to 3.5 per cent. over
LIBOR for the first 12 months rising to 4 per cent. over LIBOR for
the second 12 months. The Company is currently paying a range of
interest charges for its debt including 10 per cent. over LIBOR for
the mezzanine facility. The New Facility will be made available
upon repayment of certain amounts of debt which may require new
equity investment into the Group.
An announcement will be made at the appropriate time if there is
any further change in the financial condition of the Group.
Application has been made for the admission ('Admission') of the
Placing Shares to trading on the AIM market of the London Stock
Exchange. It is expected that Admission will become effective and
that dealings will commence on 01 March 2011. Upon issue, the
Placing Shares will rank pari passu in all respects with the
Company's existing Ordinary Shares.
Following the Placing, the total number of shares in issue is
49,856,103. There are no shares held in treasury. The total number
of voting rights in the Company is therefore 49,858,103.
The above figure of 49,858,103 may be used by shareholders as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the Company, under the Disclosure and
Transparency Rules.
Enquiries:
First Artist Corporation Plc
Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20
79930000
Seymour Pierce Limited
Stewart Dickson /Tom Sheldon Tel: +44 20 71078000
Bishopsgate Communications Limited
Duncan McCormick Tel: +44 20 75623350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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