Business
Placing and Share Reorganisat
Placing and Share Reorganisat.
About this update from Provexis Plc
[{"type":"text","content":"\n RNS Number : 5042A Provexis PLC 01 August 2008 \n \n1 August 2008\n\nPROVEXIS PLC\n('Provexis' or the 'Company')\nPLACING OF NEW ORDINARY SHARES, SHARE RE-ORGANISATION\nAND\nNOTICE OF EXTRAORDINARY GENERAL MEETING\n\nThe Company announces that it proposes to raise approximately £2.5 million (before expenses) (the 'Placing') through the issue of 386,894,230 New Ordinary Shares (the 'Placing Shares') at a price of 0.65p per share ('Placing Price'). The Placing Price represents a discount of approximately 33.7 per cent. to the closing mid-market price of 0.98 pence per Existing Ordinary Share on 31 July 2008, being the last dealing day prior to the release of this announcement. The Placing Shares will represent approximately 49.1 per cent. of the Company's Enlarged Ordinary Share Capital.\n\nThe Placing Shares have been conditionally placed by Arbuthnot Securities with institutional, trade and other investors. Subject, inter alia, to the passing of the Resolutions at the Extraordinary General Meeting on 26 August 2008, Admission and dealings in the Placing Shares are expected to commence on AIM on 28 August 2008. As part of the Placing, certain Directors are subscribing for an aggregate of 12,695,000 Placing Shares. Certain Directors (and their related parties) and other Shareholders have irrevocably undertaken to vote in favour of the Resolutions in respect of 167,086,409 Existing Ordinary Shares, representing, in aggregate, approximately 41.59 per cent. of the Company's Existing Ordinary Shares.\n\nThe Company intends to invest the proceeds of the Placing as follows:\n\n\n\nthe investment in Fruitflow® and future potential Fruitflow® health claims; \n\n\nthe commencement of a Crohn's Disease patient trial using plantain-technology and the potential extension of the claim portfolio for this technology; and\n\n\nresearching new intellectual property or the setting up of joint ventures related to new functional or medical food technologies.\n\n\n\nAs the Placing Price is below that of the nominal value of the Company's Existing Ordinary Shares, the Company needs to effect the Share Re-organisa...