Placing of New OrdinaryShares
15 1월 2004 - 4:00PM
UK Regulatory
RNS Number:2587U
AIT Group PLC
15 January 2004
15 JANUARY 2004
AIT GROUP PLC
("AIT" or "the Company")
PLACING OF NEW ORDINARY SHARES TO RAISE
APPROXIMATELY #2.74 MILLION
REPAYMENT OF LOAN NOTE
AIT Group plc announces that 4,571,880 new ordinary shares of 2.5 pence each in
the share capital of the Company (the "Placing Shares") have been placed by
Arbuthnot Securities Limited with institutional investors at a price of 60 pence
per share to raise approximately #2.74 million before expenses (the "Placing").
The Placing Shares represent approximately 10 per cent. of the existing issued
share capital of the Company.
AIT also announces that it has reached agreement with Information Management
Associates, Inc. ("IMA") for the effective repayment of a promissory note of
US$3.5 million ("the IMA Loan Note") issued by AIT to IMA as part of the
consideration for the original purchase of IMA's business and assets in
September 2001. Under this new agreement between AIT and IMA, IMA has agreed to
accept the sum of US$1.75 million, plus a contribution towards IMA's costs not
to exceed US$50,000, payable in cash, in full and final settlement of the IMA
Loan Note.
Accordingly, approximately #1 million of the net proceeds of the Placing will be
used to repay the IMA Loan Note, thereby removing a balance sheet liability of
US$3.5 million. The remaining net proceeds of the Placing will be utilised to
further strengthen the Company's balance sheet.
Nick Randall, Chief Executive Officer of AIT, said today, "As we stated at the
time of our Interim results last November, we have been proactively
investigating ways in which to improve our balance sheet and further strengthen
our financial position. We are therefore very pleased to announce the raising of
these additional funds and are particularly encouraged by the level of demand we
have experienced. The strengthening of our balance sheet is a key part of our
growth strategy and will leave us better positioned to develop the Company and
deliver shareholder value in the long-term."
Application will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on the Alternative Investment Market of the London Stock
Exchange ("AIM"). The Placing Shares will rank pari passu with the existing
ordinary shares of 2.5 pence each in the share capital of the Company ("Ordinary
Shares").
The Placing is conditional, inter alia, on the admission of the Placing Shares
to AIM becoming effective, which is expected to occur on 21 January 2004, when
dealings in the Placing Shares are expected to commence.
ENQUIRIES:
AIT Group plc Tel. 01491 416600
Nick Randall, Chief Executive Officer
Matthew White, Chief Financial Officer
Arbuthnot Tel. 020 7002 4600
Guy Peters, Corporate Finance
Dru Danford, Corporate Finance
ICIS Tel. 020 7628 1114
Archie Berens 07802 442486 (mobile)
Caroline Evans-Jones
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This information is provided by RNS
The company news service from the London Stock Exchange
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