TIDMTOOP
RNS Number : 2201D
Toople PLC
26 October 2020
For immediate release: 26(th) October 2020
Toople PLC
("Toople" or the "Company")
Placing to raise GBP774,000
Toople PLC (LSE: TOOP), a provider of bespoke telecom services
to UK SMEs, is pleased to announce that it has conditionally placed
704,010,226 new ordinary shares in the Company (the "Placing
Shares") with institutional and other investors at 0.11p per share
(the "Placing Price") to raise GBP774,000 (before expenses) (the
"Placing").
The Placing was significantly oversubscribed and utilised all of
the existing share issue capability of the Company.
The Net Proceeds of the Placing will used be to:
-- provide further working capital to support the Company's growth;
-- invest in targeted marketing initiatives;
-- shorten the Company's anticipated timeline to profitability and positive cashflow; and
-- enhance the Company's service offerings.
Toople Chairman Richard Horsman commented:
"The Company has made substantial operational and financial
progress in recent months and securing this injection of capital
leaves the Company with a healthier balance sheet and well
capitalised to continue our growth strategy. Given the general
economic uncertainty in the UK and with the full impact of COVID 19
not yet fully clear, the Board felt it appropriate and prudent to
take advantage of market demand. In addition, we are beginning to
see acquisition opportunities as a result and we are well-placed to
consolidate this market."
Andy Hollingworth CEO added:
"Importantly, we expect this funding to take the Company towards
profitability and positive cash generation. This market confidence
in our strategy and the recent contract wins are further evidence
that Toople is well placed to take advantage of the macro drivers
which are expected to precipitate substantial growth for the Group,
specifically HM Government's commitment to the rolling out of fibre
telecommunication infrastructure to replace copper and the
necessary and ultimately unavoidable upgrade of the country's
network from 4G to 5G."
Completion of the Placing is conditional on, inter alia:-
(i) the Placing Shares being admitted to listing on the Official
List (standard listing segment) and to trading on the London Stock
Exchange's main market for listed securities ("Admission") on 9
November 2020 (or such later date as may be agreed by the Company
and Novum Securities); and
(ii) the Placing Agreement between the Company and Novum
Securities Limited not being terminated in accordance with its
terms.
Applications will be made to the UK Listing Authority and to the
London Stock Exchange for Admission in respect of all the Placing
Shares. It is expected that Admission will become effective, and
that dealings in the Placing Shares are expected to commence, at
8.00 a.m. on 9 November 2020.
The rights attaching to the Placing Shares will be uniform in
all respects and all of the Placing Shares will rank pari passu,
and form a single class for all purposes with, the existing issued
shares of 0.0667p each in the Company.
When the Company has the requisite regulatory authority, one
warrant will be issued to placees for each share subscribed,
exercisable at 0.2p per share with a three year life from date of
their issue. At the same time, Novum Securities Limited will be
issued 35,200,511 warrants exercisable at the Placing Price.
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse
-Ends-
For further information please visit www.toople.com or
contact:
Toople PLC Tel: 0800 0499 499
Andy Hollingworth, Chief Executive
Officer
Paul White, Chief Financial
Officer
Novum Securities Limited Tel: 020 7399 9400
David Coffman / Colin Rowbury
/ Jon Belliss
Belvedere Communications Tel: 020 3687 2754
John West / Llew Angus
About Toople PLC
Toople PLC is incorporated in the UK and listed on the main
market of the London Stock Exchange.
The business currently trades under four main brands:
www.toople.com ; www.dmsluk.co.uk ; broadbandandphones.co.uk ;
www.checkthatcompany.co.uk .
Toople.com provides bespoke telecoms services for its fast
growing target market of UK SMEs with between one and 500
employees. Services offered by the Group include business
broadband, fibre, EFM and Ethernet data services, business mobile
phones, cloud PBX and SIP Trunking and Traditional Services (calls
and lines) all of which are delivered and managed via the Group's
proprietary software platform.
In February 2020, Toople completed the acquisition of DMS
Holding (DMSL) . DMSL commenced trading in 2002 and provides
unified communication services in the UK, ranging from a single
phone line to a multi-site unified comms VoIP platform, delivered
via a network of telecoms and IT carriers and content providers
across the UK including BT Business, BT Global Services, Gamma, EE,
Vonage, TalkTalk Business and O2.
DMSL acts as a BT Premier re-seller for broadband connectivity,
mobile and fixed voice and cloud services and is responsible for
over 250,000 BT customers and over 400,000 Revenue Generating
Units.
The acquisition of DMSL was transformational for Toople, as it
also expanded the Group's reach into the UK residential market,
which is experiencing a period of rapid change, as operational
automation further develops and more people choose to (or are
forced to) work from home.
The Company also owns a telecoms price comparison website and a
service offering company credit reference checking and reports.
These complement the Group's IT and telecoms services.
All the Group brands seek to differentiate themselves by
offering IT, telecoms and broadband solutions, with robust and
reliable packages, that enhance a customers' business and are based
on trust and transparency, with no hidden fees within pricing
policies. This provides customers with a clear understanding of
cost and fixed prices for the duration of their contracts.
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END
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