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

IOEBZLFLFLFFBBZ

Volution (LSE:FAN)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Volution Charts.
Volution (LSE:FAN)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Volution Charts.