Business
Acquisition & Issue of Equity
Acquisition & Issue of Equity.
About this update from Iomart Group Plc
[{"type":"text","content":"\n Iomart Group PLC\n25 July 2003\n\n\n\n iomart Group plc\n Acquisition of Web Genie Internet Limited (trading as NicNames)\n and placing of new shares to raise £0.8 million\n\n\niomart Group plc ('iomart' or 'the Company') today announces that it has\nacquired, through its 75% owned subsidiary, iomart Internet Limited, the entire\nshare capital of Web Genie Internet Limited ('NicNames') for a total\nconsideration of £437,504 in cash. Of this consideration, £275,000 will be\npayable on completion with the balance being payable in 24 monthly instalments\nof £6,771.\n\nNicNames is a web hosting and domain registration business with a customer base\nof over 14,000 customers and 40,000 registered domains. Based on NicNames'\nunaudited management accounts for the 12 months ended 31 May 2003, the company\ngenerated revenue of £850,000 and a pre tax loss of £25,000. Net assets as at\ncompletion are expected to be £17,000, including £150,000 cash at bank.\n\nThe acquisition of NicNames substantially increases iomart's customer base and\nwill provide opportunities to sell the Company's other products to existing\nNicNames customers. It is also anticipated that significant reductions in\nNicNames' cost base can be achieved by merging its operations with iomart's.\n\nThe Company also announces that 5,379,500 new ordinary shares of 1p each have\nbeen conditionally placed with institutional investors at a price of 15 pence\nper share, representing a discount of approximately 6.25 per cent. to the\nprevious day's closing share price of 16 pence per share. Once completed, the\nplacing will raise approximately £778,000 net of expenses for the Company.\n\nThis placing has been undertaken to satisfy institutional demand for equity. The\nproceeds raised will be used to fund the acquisition of NicNames and for general\nworking capital purposes, thereby supplementing iomart's net cash balances of\napproximately £3,400,000 (as at 21 July 2003) for continuing the roll out of\nNetIntelligence as well as for making other acquisitions as and when\nappropriate.\n\nThese 5,379,500 new ordinary shares of 1 pence each will rank pari passu with\nall other ordinary shares now in issue. Application for these new shares to be\nadmitted to trading on AIM has been made and admission is expected to occur on\n28 July 2003.\n\nThe placing is conditional up...