Business
Related Party Transaction
Related Party Transaction.
About this update from Blue Star Capital Plc
[{"type":"text","content":"\n Blue Star Capital plc\n29 January 2007\n\n29 January 2007\n\n\n\n\n\n BLUE STAR CAPITAL PLC\n\n\n\n ('Blue Star' or 'the Company')\n\n\n\n Investment of £150,000 in Izimi\n\n\n\n\n\nOn 12 September 2006 Blue Star Capital plc (AIM: BLU), the company created to\nprovide seed capital for early stage companies, announced an investment in\nIzimi.com ('Izimi'), the innovative web-based software company that is currently\ndeveloping a free desktop software application that enables users to\nself-publish adverts, media, documents and files on the internet, without the\nneed for a third party web site or hosting service.\n\n\n\nBlue Star today announces that it is making an additional £150,000 investment in\nIzimi, at a valuation of £5.08m. The investment is in the form of a subscription\nfor ordinary shares as part of a total placing of £580,000. Following this new\ninvestment, Blue Star's aggregate investment in Izimi will be £300,000.\n\n\n\nIzimi's applications are currently in a beta-testing phase, with an expected\nlaunch in February 2007. As such, the company is not yet revenue generative.\nSince its incorporation on 14 September 2005 Izimi has incurred development\nlosses of £690,896 and, as at 31 December 2006, the company had net assets of\n£124,204.\n\n\n\nNigel Robertson, Blue Star's Chairman, is a shareholder and director of eSeekers\nLimited, the holding company for Izimi. The proposed investment by Blue Star in\nIzimi is, accordingly, deemed to be a related party transaction under the AIM\nRules.\n\n\n\nHaresh Kanabar, has no connections with Izimi and is therefore independent of\nthe transaction. Mr Kanabar considers, having consulted with Teather & Greenwood\nLimited, that the terms of the transactions are fair and reasonable insofar as\nBlue Star's shareholders are concerned.\n\n\n\n\nFor further information:\n\nBlue Star Capital plc\nHaresh Kanabar, Chief Executive Tel: 020 7297 0010\n\nTeather & Greenwood\nMark Dickenson Tel: 020 7426 9000\n\nHolborn Public Relations Limited\nDavid Bick Tel: 020 7929 5599\n\n\n\n\n\n\n\nNotes:\n\n\n\nIzimi is a free desktop software application that enables users to self-publish\nadverts, media, documents and files on the Internet, without the need for third\nparty web site or hosting service.\n\nIzimi has the functionality that enables people to find and socialise w...