TIDMIGR
RNS Number : 0479F
IG Design Group PLC
25 July 2016
25 July 2016
IG Design Group plc ("IG Design" or "the Company")
Placing to raise GBP5.25 million
IG Design Group Plc, one of the world's leading designers,
innovators and manufacturers, of gift packaging and greetings,
social expression giftware, stationery and creative play products,
today announces that it has raised GBP5.25 million (before
expenses) by way of a placing of 3,000,000 new Ordinary Shares at a
price of GBP1.75 pence per share. The Company has undertaken the
Placing following strong institutional demand from both new and
existing Shareholders.
As the Placing Shares represent only 5 per cent. of the existing
Ordinary Shares in issue, they are being allotted using the
Directors' existing authority to allot Ordinary Shares for cash on
a non pre-emptive basis, as granted at the Company's most recent
AGM.
Highlights
-- Placing to raise gross proceeds of GBP5.25 million for the Company.
-- The net proceeds of the Placing, will be used to:
- satisfy working capital requirements for the recent
acquisition of Lang Companies Inc ("Lang");
- support a capital investment project to build the Group's
capabilities in the UK to manufacture retail bags not for resale
('Retail Collateral'); and
- provide the Group flexibility to pursue opportunities to drive
further growth whether strategic acquisitions or capital
investment.
-- Strong support shown from both existing shareholders and new
institutional investors, further diversifying the shareholder base
and increasing the free float of the Company.
-- As set out in the Company's recent full year results the
Company can confirm current trading remains strong and the Group's
outlook remains unchanged. Due to the minimal dilution from the
Placing, the Board is maintaining its existing earning per share
expectations which were upgraded following the Lang
acquisition.
Paul Fineman, Chief Executive Officer, commented:
"We are delighted to raise these funds, with the support shown
by shareholders being a testament to the significant progress made
within the business. The Company continues to build on its growing
momentum following our strong results and recent re-brand, and
alongside the acquisition of Lang, this Placing allows us to
capitalise on opportunities to drive growth quickly and flexibly,
be those organic capital investment or acquisitions.
"As the Group continues to evolve into a multi-category,
design-focused and global business, we look forward to building on
the strong foundations already in place, and achieve our vision of
further profit growth underpinned by a unique blend of creativity
and reliability."
Introduction and summary
The Company announces that it has raised GBP5.25 million (gross)
by way of a placing of the New Shares with new and existing
investors at the Placing Price. The Placing Price represents a
discount of 4.8 per cent. to the Company's average mid-market
closing price for the 5 business days preceding this announcement.
The Placing is conditional on Admission.
Background to and reasons for the Placing
The Transaction is being undertaken to satisfy working capital
requirements for the recent acquisition of Lang, completed in July,
the design-led supplier of high-quality branded consumer indoor and
outdoor home décor and lifestyle products, based in the USA.
In addition, the Company has also approved a capital project in
the UK to manufacture 'Retail Collateral', defined as retail bags
not for resale. The project, a natural extension of Design Group's
product categories, is backed by a commercial agreement with an
existing partner already in operating in the retail collateral
domain. It complements existing manufacturing capabilities at the
Company's factory in China.
Alongside these opportunities, the funds will be used to support
the Group's pursuit of further strategic acquisitions and allow
further capital investment in existing projects.
The Placing Agreement
Pursuant to the terms of the Placing Agreement, Cenkos, as agent
for the Company, has conditionally agreed to use its reasonable
endeavours to procure subscribers for the New Shares at the Placing
Price and as agent for the Selling Shareholders to procure
purchasers for the Sale Shares.
The Placing Agreement is conditional upon, inter alia, Admission
becoming effective on or before 8.00 am on 28(th) July 2016 (or
such later time and/or date as the Company and Cenkos may agree,
but in any event by no later than 8.00am on 30 September 2016).
Settlement and dealings
Application will be made to the London Stock Exchange for the
New Shares to be admitted to trading on AIM. It is expected that
Admission will occur on 28 July 2016.
The New Shares will, when issued, rank in full for all dividends
and other distributions declared, made or paid on the Ordinary
Shares following Admission and otherwise pari-passu in all respects
with existing Ordinary Shares.
Following Admission, the Company will have 62,280,833 Ordinary
Shares in issue with voting rights. This figure is the number which
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 interests in, the Company under
the FCA's Disclosure and Transparency Rules.
Placing Statistics
Placing Price GBP1.75
Number of Placing Shares 3,000,000
Gross proceeds receivable by the Company GBP5.25 million
Estimated proceeds receivable by the GBP5.00 million
Company, net of expenses
Number of existing Ordinary Shares
in issue with voting rights 59,280,833
Number of Ordinary Shares in issue
following Admission 62,280,833
New Shares as a percentage of the existing 5.1 per cent
voting Ordinary Shares
Expected timetable of principal events
Announcement of the Placing 25 July 2016
Admission 28 July 2016
Where applicable, expected date 28 July 2016
for CREST accounts to be credited
in respect of Placing Shares
in uncertificated form
Definitions
"Admission" the admission of to trading on
AIM of the New Shares issued
pursuant to the Placing, expected
to be admitted to trading on
AIM on 28(th) July 2016
"AIM" the market of that name operated
by the London Stock Exchange
"AIM Rules" the AIM Rules for Companies published
by the London Stock Exchange,
as amended from time to time
"Board" or "Directors" the directors of the Company
"Cenkos" Cenkos Securities plc, the Company's
nominated adviser and broker
"Company" or IG Design Group plc, a company
"IG Design" incorporated and registered in
England and Wales with registered
number 01401155, whose registered
office is at IG Design Group
plc, No 7 Water End Barns, Water
End, Eversholt, Bedfordshire,
MK17 9EA
"CREST" means the relevant system (as
defined in the CREST Regulations)
"Group" the Company and its subsidiary
undertaking undertakings from
time to time
"New Shares" means 3,000,000 new Ordinary
Shares proposed to be issued
by the Company and subscribed
for pursuant to the Placing
"Ordinary Shares" ordinary shares of 5p each in
the capital of the Company
"Placing" the placing of the Placing Shares
pursuant to the Placing Agreement
"Placing Agreement" the conditional agreement dated
22(nd) July 2016 and made between
Cenkos and the Company
"Placing Shares" the New Shares and the Sale Shares
"Placing Price" GBP1.75 per Placing Share
"Shareholders" holders of Ordinary Shares
For further information please contact:
IG Design Group plc Tel: 0152 588 7310
Paul Fineman, Chief Executive
Anthony Lawrinson, Chief Financial Officer
Cenkos Securities plc Tel: 0207 397 8900
Bobbie Hilliam (Corporate Finance)
Alex Aylen (Sales)
Redleaf Communications Tel: 0207 382 4730
Rebecca Sanders-Hewett
Sarah Fabietti
Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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