Business
Proposed Issue of New Ordinar
Proposed Issue of New Ordinar.
About this update from Aurrigo International Plc
[{"type":"text","content":"\n RNS Number : 3222E Aurora Russia Limited 17 December 2009 \n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA, OR ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO\nFor immediate release\n 17 December 2009\nAurora Russia Limited\n(\"Aurora\" or the \"Company\")\nProposed issue of up to 37,500,000 New Ordinary Shares at 40 pence per share\nFurther investment in OSG\nHighlights\n\n\n\nThe Board today announces that it has entered into the OSG Investment Agreement which provides for the acquisition of existing OSG ordinary shares from the Vendors and the issue of new OSG shares to the Company for total consideration of £12.4 million\n\n\n\n\nOf this consideration £8.0 million will be satisfied through the issue of Consideration shares to the Vendors, £1.2 million will be payable in cash to the Vendors and £3.2 million will be used by the Company to subscribe for new ordinary shares in OSG\n\n\n\n\nThe Board also announces a Placing to raise £7.0 million to satisfy the cash element of the acquisition consideration, to enable the Company to subscribe for the new ordinary OSG shares and to provide working capital for the Company\n\n\n\n\nThe Placing has not been underwritten\n\n\n\n\nThe Board has approved the Amended Option Deed with the Manager\n\n\n\n\nThe Company also announces that, following the receipt of cash from a disposal of any of its portfolio companies, it intends to return to Shareholders an amount up to the lesser of the total sale proceeds of the portfolio company and a maximum of 1.5 times the total amount invested in that portfolio company plus the pro-rata allocation of costs of the Company to date, until the Company has returned a total of £105 million to Shareholders. Any proceeds in excess of this amount shall be retained for reinvestment purposes\n\n\n\nCommenting on the Placing, Dan Koch, Chairman said:\n\n\n\"I believe that the benefit to the Company and its Shareholders of the placing outweighs the dilutive effect the placing has on shareholders not participating. Taking control of OSG and investing in a warehouse in Moscow will no doubt improve the future stability of ...