Business
Acquisition and Placing
Acquisition and Placing.
About this update from Coral Products Plc
[{"type":"text","content":"\n \nRNS Number : 6691P Coral Products PLC 22 February 2016 \n\n22 February 2016\nCORAL PRODUCTS PLC\n(\"Coral\" or the \"Company\")\n \nACQUISITION AND PLACING\n \nAcquisition of the entire issued share capital of Global One-Pak Holdings Limited\n \nPlacing of 13,750,000 new ordinary shares at 20 pence per share raising £2.75 million\n \n \nCoral Products plc, a specialist in the design, manufacture and supply of injection moulded plastic products based in Haydock, Merseyside, is pleased to announce that it has conditionally acquired the entire issued share capital of Global One-Pak Holdings Limited (\"GOP\") for a minimum consideration of £3.60 million (\"Acquisition\"), comprising £2.95 million to be satisfied in cash and £0.65 million to be satisfied by the issue of 3,250,000 new ordinary shares to the vendors of GOP (\"Vendors\") at a price of 20 pence per share (\"Consideration Shares\"). \n \nThe cash consideration for the Acquisition is being satisfied from:\n \n(i) £0.40 million of free cash available at GOP, such funds becoming payable to the Vendors pursuant to the terms of the share purchase agreement between the Vendors and the Company (\"SPA\") as to £0.30 million upon completion of the Acquisition and £0.10 million on the date falling 90 calendar days after the date of completion of the Acquisition; and \n \n(ii) £2.55 million of the proceeds of a placing of 13,750,000 new ordinary shares in the Company at a price of 20 pence per share (\"Placing Shares\") with new and existing investors (the \"Placing\") to raise £2.75 million for Coral before expenses of approximately £0.20 million. The Placing was conducted through Daniel Stewart & Company Limited, the Company's broker, and was oversubscribed. \n \nIn addition to the consideration of £3.60 million detailed above, an earn-out consideration shall become payable to the Vendors in the event that GOP's EBITDA for the year ended 31 December 2016 (\"2016 EBITDA\") exceeds GOP's EBITDA for the year ended 31 December 2015 (\"2015 EBITDA\") (\"Earn-Out Consideration\"). If triggered, the Earn-Out Consideration shall be equivalent to 2.5 times the difference between 2016 EBITDA and 2015 EBITDA ...