Business
Placing & Other Matters; Notice of General Meeting
Placing & Other Matters; Notice of General Meeting.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n \nRNS Number : 5767J Real Estate Investors PLC 01 July 2011 \n \n\n1 July 2011\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA OR SWITZERLAND OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL\n \n \nREAL ESTATE INVESTORS PLC\n(\"REI\" or the \"Company\") \n \nPlacing of new Ordinary Shares\nShare Consolidation\nReduction of Share Premium Account\nand \nNotice of General Meeting\n \nFurther to the announcement made on 28 June 2011, Real Estate Investors plc (AIM:RLE), the West Midlands based property group, announces that it has conditionally placed 218,181,821 new Ordinary Shares at a price of 5.5 pence per Ordinary Share, raising gross proceeds of £12 million (£11.7 million net), from institutional and other investors. \n \nSummary of the Placing\n \n* Placing of 218,181,821 new Ordinary Shares at a Placing Price of 5.5 pence per Ordinary Share, to raise gross proceeds of £12 million (£11.7 million, net)\n \n* Net proceeds of the Placing to be used to provide additional resources to capitalise on acquisition opportunities in the West Midlands property market \n \n* The Placing Price represents a discount of 4.3 per cent. to the closing middle market price of 5.75 pence per Ordinary Share on 27 June 2011, being the latest practicable date prior to the initial announcement of the Placing\n \n* The Placing Shares will represent approximately 30.5 per cent. of the Company's enlarged issued share capital\n \nThe Placing is conditional, inter alia, on the approval by Shareholders in a general meeting. A circular setting out the details of the Placing and other proposals (the \"Circular\"), incorporating a notice convening the General Meeting, will be posted to shareholders today. The Circular, Form of Proxy and a copy of the presentation made to prospective investors will also be available on the Company's website later today.\n \nThe Circular also sets out the Company's proposals to undertake a Share Consolidation and reduce the Company's share premium account to create distributable reserves to facilitate the payment of dividends in the future.\n \nInformation extracted f...