Business
Issue of Equity and Update on
Issue of Equity and Update on.
About this update from Kendrick Resources Plc
[{"type":"text","content":"\n RNS Number : 9149N Kenetics Group Limited 21 June 2010 \n \n\n \n21 June 2010\n \nKenetics Group Limited (\"Kenetics\" or \"the Company\")\n \n \nIssue of Equity and Update on Contract with Singapore Land Transport Authority\n \nPLACING\n \nKenetics (AIM:KEN) announces that it has raised £300,000, before expenses, by way of a Placing of 7,500,000 new ordinary shares of 1 pence each in the Company, issued and allotted at a price of 4.0pence per new ordinary share. The shares have been placed with Ken Wong, Chairman and Chief Executive and Yeong Hin Yuen, COO of the Company. The Placing price represents a 60% premium to the mid market closing price of the Company's shares on Friday 18 June. The funds will be used for working capital to continue Kenetics fulfillment of its contract with the Singapore Land Transport Authority (\"LTA\") which is progressing very satisfactorily.\n \n Accordingly, application has been made for the new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 23 June 2010.\n \nKen Wong and Yeong Hin Yuen, have subscribed for 5,625,000 and 1,875,000 new ordinary shares respectively. Following this transaction, their beneficial interest in the Company is as follows:\n \nKen Wong: Previous shareholding: 13,753,625 (41.24%) New shareholding 19,378,625 (47.44%)\n \nYeong Hin Yuen: Previous shareholding: 5,826,950 (17.47%) New shareholding: 7,701,950 (18.85%)\n \nThe issue of these new ordinary shares to directors is a related party transaction under the AIM Rules for Companies. Where a company whose shares are listed on AIM enters into a related party transaction, AIM Rule 13 requires the directors of the Company to consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. John Lynton Jones and Terry Fuller (the independent directors) consider, having consulted with ZAI Corporate Finance Ltd, the Company's nominated adviser, that the terms of the related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.\n \nThe new ordinary shares will rank pari passu with the existing shares of the Company. Following this allotment the total ...