Business
Issue of equity
Issue of equity.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n RNS Number : 7266X Sarantel Group PLC 10 December 2010 \n \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY JURISDICTION IN WHICH SUCH PUBLICATION IS UNLAWFUL.\n \n10 December 2010\n \nSarantel Group PLC\n \nIssue of Equity \n \nSarantel (AIM: SLG; 'Sarantel' or the 'Group'), the leading manufacturer of revolutionary filtering antennas for mobile and wireless devices, is pleased to announce the terms of a placing by Seymour Pierce Limited, acting as the Company's Nominated Adviser and Broker to the Placing, of 110,000,000 A Ordinary Shares at a price of 1.25 pence per share. \n \nThe Placing is conditional, inter alia, upon Shareholders approving the Resolutions at the General Meeting of the Company to grant to the Directors authority to allot shares and power to disapply statutory pre-emption rights on allotment and also upon the Placing Shares being admitted to trading on AIM. The Resolutions are contained in the notice of GM in the Circular posted today. \n \nBackground to and reasons for the Placing\n \nThe Company's cash resources as at 31 March 2010 and 30 September 2010 were £1.6 million and £0.6 million, respectively. The proceeds of the Placing, which amount to approximately £1.25 million after expenses, will provide the Group with additional working capital, allow the Group to expand its sales and marketing efforts and further invest in research and development.\n \nThe Directors believe that the Placing was the most appropriate means of providing financing for Sarantel and the Group can now capitalise on recent successes and future opportunities, particularly sales in the GPS and military markets and lower cost assembly processes with Elcoteq. As a result the Directors believe the outlook for Sarantel is very positive.\n \nCurrent trading\n \nIn the announcement dated 22 November 2010 of the Preliminary Results for the year ended 30 September 2010, it was reported that Sarantel had increased and diversified its revenue base, cut costs and reduced its operating loss for the fourth consecutive year. \n \nTotal Group revenues grew to £2.9 million (2009: £2.8 million) and the military market continu...