MIC Micap

RNS Number:1965T
MICAP PLC
27 April 2008


For release: 28th April 2008



                                    MICAP PLC

                    CORPORATE REVIEW, ISSUE OF LOAN STOCK AND

                           RELATED PARTY TRANSACTION


CORPORATE REVIEW

In the interim announcement on 18th December 2007 it was announced that Micap
plc ("the Company") was reviewing all aspects of its business to ensure it was
maximising shareholder value. As a consequence of this review a number of
opportunities have been identified to dispose of certain parts of the business
which no longer fit the focus on food ingredients. The Company is now actively
seeking to realise these interests via discussions with agents and directly with
potential purchasers and will advise of progress as it occurs.

During this review process, a number of potential acquisition opportunities have
also arisen which could enhance the business significantly and several of these
have been investigated in detail.

The time and finance required in order to conduct full due diligence on one of
these acquisition opportunities will involve the Company in expenditure which is
outside its normal trading operations, and it will be necessary to provide
additional external funding to meet these costs.


ISSUE OF LOAN STOCK

The Board has explored a number of options to meet this financing requirement
and has concluded that the only option available in the present market
conditions is the issue of loan stock. Accordingly, the Board today announces
that it has raised additional funding of #210,000 by way of an issue for cash of
new Loan Stock to the Directors and other private shareholders.

The Directors are subscribing for Loan Stock as follows:

Director                                                          Loan Stock

Bill Mapstone                                                        #50,000

Neil Crabb                                                           #45,000

Ian McManus                                                           #5,000

Michael Norris                                                       #10,000



The terms of the Loan Stock provide, inter alia, for interest to be payable at
10 per cent. per annum. The Loan Stock is redeemable two days after the date of
the next AGM or EGM. However, the Company and the subscribers to the Loan Stock
have indicated a willingness to consider a conversion to equity at a later date.


RELATED PARTY TRANSACTION

Each of the Directors, who together own 23.3% of the Company's share capital, is
subscribing for Loan Stock and this is therefore a Related Party Transaction as
defined in the AIM Rules for Companies.

Where a company whose shares are listed on AIM enters into a Related Party
Transaction, AIM Rule 13 requires the directors of the Company to make a
statement that they consider, having consulted with the Company's nominated
adviser, that the terms of the transaction are fair and reasonable insofar as
its shareholders are concerned.

As all of the Company's Directors are subscribing for Loan Stock, there are no
independent directors available to make the above statement. Taking into account
the Directors' commercial assessments of the potential acquisition opportunities
to be assessed by the Company, HB Corporate, the Company's Nominated Adviser,
considers that the terms of the related party transaction with each of the
Directors are fair and reasonable insofar as the Company's shareholders are
concerned.

Bill Mapstone, Chairman, commented "We have been actively seeking opportunities
to grow the Company in the food ingredients sector, and feel that the deals
currently being reviewed will satisfy this aim and be to the benefit of all
shareholders".



Enquiries:


Micap plc                                      +44 (0)1942 625590
Michael Norris, CEO

HB Corporate                                  +44 (0)20 7510 8600
Imran Ahmad
Edward Hutton
Rory Creedon

Adventis Financial PR                    +44 (0)20 7034 4758/4759
Tarquin Edwards
Chris Steele


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

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