Business
Conditional Placing to Raise £6 million
Conditional Placing to Raise £6 million.
About this update from Plexus Holdings
[{"type":"text","content":"\n \nRNS Number : 9643A Plexus Holdings Plc 13 June 2016 \n\n \nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n \n \n \n \nPlexus Holdings PLC ('Plexus' or 'the Company')\nConditional Placing to raise £6 million\n \nPlexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, is pleased to announce that it has agreed the terms of a conditional placing (the \"Placing\") to raise £6,000,000 before expenses, by way of a placing of 9,230,770 new Ordinary Shares (\"Placing Shares\") at a price of 65 pence per Ordinary Share to new and existing investors.\nThe Placing is intended to strengthen Plexus' balance sheet during the current down cycle and to provide Plexus with the flexibility to support the capital requirements of its long term strategy of becoming a leading international oil and gas services company, supplying a new and superior standard of wellhead equipment and associated products for exploration, production and subsea applications.\nThe proceeds of the Placing will be applied across a number of the Company's areas of activity to ensure that Plexus is well placed to take advantage when sector activity resumes. In particular, the Board believes that the net proceeds of the Placing will enable Plexus to:\n· pursue existing global opportunities (beyond the Company's on-going North Sea operations) and to continue to support Plexus' activities in new regions - Asia, Russia and North/South America;\n· progress the Python Subsea Wellhead development programme towards a target trial in 2016;\n· support on-going development of POS-GRIP product suite (including production and subsea applications);\n· strengthen Plexus' working capital position during the down cycle; and\n· channel targeted R&D spend towards complementary products (such as WellTreeTM, Xmas Trees) and the decommissioning market.\nThe Placing is conditional upon Shareholders' approval being ...