Business
Proposed Placing and Notice o
Proposed Placing and Notice o.
About this update from Restore Plc
[{"type":"text","content":"\n RNS Number : 8294I Mavinwood PLC 19 March 2010 \n \n\nMavinwood plc\n \n(\"Mavinwood\" or the \"Company\")\n \nProposed Placing of New Ordinary Shares and Notice of General Meeting\n \nThe Board of Mavinwood announces a proposal to raise £8 million (before expenses of £40,000) to strengthen the Company's balance sheet by a conditional placing (the \"Placing\") of 1,066,666,666 ordinary shares of 0.1 pence each in the Company (\"New Ordinary Shares\") at a price of 0.75p per share (the \"Placing Price\"). The Placing Price represents a premium of approximately 57.9 per cent. to the closing price of 0.475p on 18 March 2010. The placing has been underwritten by Geraldton Services Inc (\"Geraldton\"). It is expected that Geraldton will subscribe for the entire Placing. The proceeds of the Placing will be used to pay down debt due to Geraldton.\n \nA circular has today been sent to Mavinwood shareholders to convene a General Meeting at 5.00pm on 12 April 2010 at Marble Arch Tower, 55 Bryanston Street, London W1H 7AA, to seek, amongst other things, the approval of Shareholders to allot the New Ordinary Shares. Application will be made for the New Ordinary Shares to be admitted to trading on AIM, which is expected to commence on 13 April 2010. The New Ordinary Shares will, upon issue, rank pari passu in all respects with the existing issued Ordinary Shares.\n \nAt the General Meeting, Resolutions are also being proposed to give the Directors authority to issue further Ordinary Shares and to disapply pre-emption rights in line with common market practice. Resolutions are also being proposed to make minor amendments to Mavinwood's constitution to take advantage of some of the provisions of the new Companies Act.\n \nBackground to the Placing and use of Proceeds\n \nAs at the date of this announcement, the Company owes to Geraldton a total of approximately £10.3 million consisting of £9.1 million of drawn down loans, £261,780 of interest and £900,000 of fees (the \"Debt\"). The proceeds of the Placing will be used to pay down the Debt. After such payment the Company will owe Geraldton approximately £2.3 million.\n \nThe Board remains keen to obtain investment in the Company from any other parties who may be interested in future.\n \nFollowing completion of the Placing, the issued...