RAM Active Media PLC Issue of Equity from Equity Funding (4057G)
29 June 2012 - 12:31AM
UK Regulatory
TIDMRAM
RNS Number : 4057G
RAM Active Media PLC
28 June 2012
FOR IMMEDIATE RELEASE 28 June 2012
Placing and Issue of Equity
RAM ACTIVE MEDIA PLC ("RAM" or the "Company") ANNOUNCES A
PLACING OF NEW ORDINARY SHARES TO RAISE CASH, FUND CAPITAL
EXPENDITURE AND ACQUISITION.
The Board of RAM announces that it has today completed a placing
of ordinary shares.
The Company has issued a total of 173,237,500 new ordinary
shares of 1p each at a price of 1p per share for a mixture of cash
(GBP632,375), capital commitments (GBP600,000) and a share for
share exchange (GBP500,000) to raise GBP1,732,375 before expenses,
with institutional and exempt investors on behalf of clients, its
business partner Free Ray LLC, Dubai ("Free Ray") as well as Alpha
Prospects PLC ("Alpha"). The new ordinary shares will, when issued,
rank pari passu with the existing ordinary shares in issue and
application will be made for 173,237,500 new ordinary shares to be
admitted to trading on AIM. This is expected to be on 5 July 2012.
The placing provides the Group with additional working capital.
Of the total, 80,000,000 ordinary shares were placed at the
placing price with Free Ray. The placing will secure up to
GBP600,000 in value of significantly discounted hardware assets and
a cash consideration of GBP200,000 in order to provide funding for
investment in a newly formed subsidiary RAM Interactive Limited
(RI) and its currently owned subsidiary, RAM Vision Limited (RV),
both offering a real time broadcaster solution in Digital out of
Home advertising and content to major UK Shopping Malls, Events and
Corporate venues. The new subsidiary will be trading as RAM
Interactive Limited with the screen network brand as RAM 3D.
50,000,000 ordinary shares were issued to Alpha to acquire
22,222,222 new ordinary shares in Alpha. Alpha is a PLUS markets
quoted investment company. The Alpha new ordinary shares were
issued at 2.25p, against a current mid market price of 3p per
ordinary share. Tim Baldwin, Executive Chairman of RAM is also a
director and shareholder of Alpha. The Company's independent
directors consider, having consulted with its nominated adviser,
that the terms of the transaction are fair and reasonable insofar
as its shareholders are concerned.
Pursuant to the placings announced today, the Company has been
notified that Ruffer LLP will have an interest in 110,887,500
ordinary shares representing 24.97% of the issued share capital of
RAM. Following the placing, Free Ray LLC will have an interest in
80,000,000 ordinary shares representing 18.01% of the issued share
capital of RAM and Alpha Prospects PLC will have an interest in
52,529,324 ordinary shares representing 11.83% of the issued share
capital of RAM.
Tim Baldwin, Executive Chairman commented:
"We are pleased to have secured additional funding from both
existing and new shareholders as well as business partners. This
funding and placing will be used to strengthen the group's balance
sheet and to invest in the deployment of the UK's first major roll
out of a 3D screen broadcast network in shopping malls, event and
corporate venues which allows viewing without the need for wearing
special glasses.
Further deployment of the Iconic landscape screen roll out in
RAM Vision limited is also underway across the breadth of the
Company's contracted UK shopping mall estate and a pipeline of new
sites is under consideration. The current roll out and future site
opportunities offer significant increase in consumer footfall for
major brands and advertising agencies to gain access too. Figures
from the Outdoor Media Centre is demonstrating that digital
revenues were up 42% to GBP35.5m for the period quarter one 2012,
reflecting increasing adoption of new technology in the sales of
outdoor campaigns. Digital now makes up 16.7% of all outdoor
revenues.
The Group belives that the roll out of RAM Interactive 3D roll
out and further RAM Vision Iconic screens will achieve good rates
of return on the capital deployed offering enhanced future revenues
without much additional overhead required.
The funding helps secure asset finance supporting the screen
roll out across our already contracted RAM Vision broadcast
network. In additon, the ALPHA relationship is formed with a
strategic view of future business opportunities, in particular
seeking such opportunities to support the Group's previously
announced British joint venture with China's Changzhou Evergreen
Group in TrainFX limited and the global rail market sales potential
in the TrainFX product portfolio.
For further information please call:
Tim Baldwin
RAM Active Media plc 0207 518 4300
Sandy Jamieson/Thilo Hoffmann
Libertas Capital Corporate Finance Limited 0207 569 9650
Jon Bellis
XCAP Securities 0207 101 7070
This information is provided by RNS
The company news service from the London Stock Exchange
END
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