MXC Capital Limited Proposed investment in IDE Group Holdings (2362W)
31 July 2018 - 4:01PM
UK Regulatory
TIDMMXCP TIDMIDE
RNS Number : 2362W
MXC Capital Limited
31 July 2018
MXC Capital Limited
("MXC" or the "Company")
Further Investment and Conversion of Loan Notes in IDE Group
Holdings plc
MXC (AIM: MXCP), the technology focused adviser and investor,
announces that it has agreed to invest a further GBP2.47 million in
IDE Group Holdings plc ("IDE") by way of a subscription for
98,851,125 new ordinary shares of 2.5 pence each in the capital of
IDE ("IDE Shares") at a price of 2.5 pence per IDE Share (the "MXC
Subscription").
The MXC Subscription will be made in two tranches; an initial
tranche of GBP0.5 million which will complete upon admission of the
20,000,000 new IDE Shares to trading on AIM ("Admission") which is
expected to occur on 1 August 2018 (the "Firm MXC Subscription"),
and a further tranche of GBP1.97 million (the "Conditional MXC
Subscription"), conditional upon, inter alia, the passing of the
resolutions by IDE shareholders at a general meeting of IDE
expected to be held on or around 20 August 2018 ("IDE Shareholder
Approval").
Furthermore, MXC has agreed to redeem the GBP750,000 of loan
notes it holds in IDE as announced on 30 May 2018 by way of the
allotment and issue of 30,000,000 new IDE Shares, also conditional
upon IDE Shareholder Approval (the "MXC Redemption").
The MXC Subscription forms part of a wider fundraising by IDE to
raise GBP5 million by way of a total subscription for new IDE
Shares of GBP3.2 million (to include the Firm MXC Subscription and
the Conditional MXC Subscription) and the issue of GBP1.8 million
convertible loan notes, convertible at 2.5 pence per IDE Share.
Furthermore, IDE is undertaking an open offer for up to GBP0.5
million (the "IDE Open Offer") (all together, the "IDE
Fundraising"). MXC has undertaken not to take up its entitlement
under the IDE Open Offer.
On 16 July 2018 IDE announced that it had been reviewing its
options to address the ongoing working capital requirements of the
group and the board of IDE believes that the IDE Fundraising is the
best option available to IDE to re-capitalise its balance sheet and
build a strong base from which to exploit the opportunities
available to it. The net proceeds of the IDE Fundraising will be
used to alleviate the short term cash pressures on IDE and work
towards normalising its creditors.
Following the Firm MXC Subscription, MXC will hold 63,960,000
IDE Shares, representing 29.0% of the issued share capital of IDE.
Following the Conditional Subscription and the MXC Redemption, MXC
will hold 172,811,125 IDE Shares, representing a maximum holding of
45.6% assuming no take up of the IDE Open Offer. IDE has
successfully applied for a dispensation on behalf of MXC from
making a mandatory offer for IDE under Rule 9 of the City Code on
Takeovers and Mergers in relation to the IDE Fundraising.
IDE is a mid-market network, cloud and IT managed services
provider. Ian Smith, CEO of MXC, is an Executive Director of IDE
and MXC Capital Markets LLP acts as financial adviser to IDE.
Further details about IDE (including latest announcements and
financial reports) are available at www.idegroup.com.
MXC Capital Limited
Ian Smith
+44(0)20 7965 8149
Zeus Capital Limited (Nominated adviser and broker)
Giles Balleny
+44 (0)20 3829 5000
About MXC Capital Limited www.mxccapital.com
MXC is a specialist technology adviser and investor with a track
record of investing in and advising companies in the TMT sector.
MXC brings together a deep knowledge of technology, first-hand
experience of managing companies in the sector, an ability to make
meaningful investments and a highly experienced corporate advisory
team in support, all of which combine to grow shareholder
value.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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