Business
Subscription and Director's Loan
Subscription and Director's Loan.
About this update from Pipehawk Plc
[{"type":"text","content":"\n \n\n\n\n 8 October 2009\n\n PipeHawk Plc\n (\"Pipehawk\" or the \"Company\")\n\n Subscription to raise £120,000 and Director's loan\n\nThe Company announces that it has raised £120,000 by way of a\nsubscription of 1,500,000 new ordinary shares (\"Ordinary Shares\")\n(\"the Subscription Shares\") at 8p per Subscription Share (the\n\"Subscription Price\") with existing shareholders and other investors\n(\"the Subscription\"). The Subscription is conditional on admission to\ntrading on AIM (\"Admission\").\n\nIn addition, Gordon Watt, Chairman of the Company, has provided a\nloan of £100,000. Mr Watt intends to convert the loan into Ordinary\nShares at the Subscription Price or the mid-market closing price of\nthe Company's Ordinary Shares on the day prior to conversion, if\ngreater, following the announcement of the Company's results for the\nfinancial year ended 30 June 2009.\n\nThe Subscription\nPipeHawk intends to use the proceeds of the Subscription for working\ncapital generally.\n\nThe Subscription is conditional upon Admission. The Subscription\nShares, when issued and fully paid, will rank equally in all respects\nwith the Ordinary Shares, including the right to receive all\ndividends and other distributions declared, made or paid after\nAdmission.\n\nApplication has been made to the London Stock Exchange for the\nadmission to trading on the AIM market of 1,500,000 Ordinary Shares.\nIt is expected that Admission will become effective and dealings in\nsuch shares will commence on 16 October 2009.\n\nFollowing the admission of the above shares, the Company will have\n28,437,181 Ordinary Shares in issue.\n\nRelated party transaction\nGordon Watt, Chairman of the Company, has provided a loan of £100,000\nto the Company. The loan is unsecured and interest free.\n\nMr Watt has confirmed that it is his intention to convert the loan\ninto Ordinary Shares at the Subscription Price or the mid-market\nclosing price of the Company's Ordinary Shares on the day prior to\nconversion, if greater, following the announcement of the Company's\nresults for the financial year ended 30 June 2009. The Directors'\nanticipate that the results will be announced during November 2009.\n\nThe Directors, other than Gordon Watt, consider, having consulted\nwith the Company's nominated adviser, that the terms of the loan and\nits conversion into new O...