Business
Proposed Placing
Proposed Placing.
About this update from Petards Group Plc
[{"type":"text","content":"\n \nRNS Number : 9765U Petards Group PLC 09 December 2013 \n \n\n9 December 2013\n \nPETARDS GROUP PLC\n(\"Petards\" or \"the Company\")\n \nProposed Placing\n \nPetards announced today that it proposes to raise approximately £1.15 million (before expenses) by way of a placing of 11,500,000 new Ordinary Shares at a price of 10 pence per share. The Placing is conditional, inter alia, upon the Company obtaining approval from its Shareholders to disapply statutory pre-emption rights and to grant the Board authority to allot the Placing Shares. The Placing, which has been arranged by Hybridan and WH Ireland pursuant to the terms of the Placing Agreement, is also conditional upon Admission. The Placing has not been underwritten. \nBackground to and reasons for the Placing\nWhile trading conditions for 2013 have remained difficult, the Board's expectation that order intake would improve in the second half of the year has been realised. In the period since the Company reported its 2013 Interim Results on 30 September 2013, it has been awarded a number of significant contracts by both its rail and defence customers. The principal contract wins are as follows:\n· On 13 November 2013, the Company announced that it had been awarded a contract worth over £7 million by the Ministry of Defence (\"MOD\") for the supply and support of secure radio equipment for the RAF. The contract is for the replacement of the RAF's entire current Secure Management Radio Equipment (\"SMRE\") capability. The purpose of SMRE is to allow Air Traffic Control at RAF bases to direct the safe movement of vehicles and personnel on the airfield manoeuvring area. It is also used in a secondary role to provide direct communication between Air Traffic Control and those in an airfield support role such as guards, medical personnel, re-fuelling and fire crews. The project, the bulk of which will be delivered in 2014, includes a contract to provide maintenance and support to SMRE over a ten year period until November 2023 with the option to extend that support contract by a further five years.\n \n· On 11 November 2013, the Company announced that it had been awarded a contract to supply Hyundai Rotem of South Korea with Petards eyeTrain on-board digital CCTV system...