Business
Prospectus Update
Prospectus Update.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n19 May 2006\n\n\nR.E.A. Holdings plc (the 'company')\n\nCompletion of capital reduction and preference share placing\n\n\nCapital reduction\n\nThe company announces that at a hearing on 17 May 2006, further to a special\nresolution passed at an extraordinary general meeting of the company held on 18\nApril 2006 and an extraordinary resolution passed at a meeting of the holders of\nwarrants held on April 2006, the High Court confirmed a reduction in the capital\nof the company.\n\n\nThe capital reduction has now become effective following the registration with\nthe Registrar of Companies of the order of the High Court confirming the\nreduction. As a result, the entire balance of £3,239,666 standing to the credit\nof the company's capital redemption reserve has been cancelled and the amount\nstanding to the credit of the company's share premium account has been reduced\nby £2,760,334.\n\n\nThe company announced the capital reduction on 22 March 2006 and full details of\nthe reduction were given in a circular sent to the company's shareholders on\nthat date (the 'March circular'). Its objective has been to reduce the\nlikelihood of the company being prevented in the future by legal rather than\ncommercial constraints from paying dividends (particularly preference\ndividends).\n\n\nPreference share placing\n\nFollowing the completion of the capital reduction, the company will complete a\nplacing arranged by Mirabaud Securities Limited (the 'preference share placing')\nof 3,000,000 new preference shares fully paid at a price of 105p per share (the\n'new preference shares'). The preference share placing was announced on 22 March\n2006 and detailed information concerning the placing was included in the March\ncircular.\n\nThe new preference shares will upon issue rank pari passu in all respects with\nthe preference shares already in issue save that the dividend payable on the new\npreference shares on 30 June 2006 will be 2 1/4p per share.\n\n\nIt is expected that the issue and listing of the new preference shares will\nbecome effective and commencement of dealings in the new preference shares will\ntake place on 22 May 2006.\n\n\nAs previously indicated, it is intended that the proceeds of the preference\nshare placing should be applied in substantially funding the net cash outflow\nfrom the group that would resu...