Business
Issue of Equity and Capital Reorganisation
Issue of Equity and Capital Reorganisation.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 4447I Sarantel Group PLC 14 June 2011 \n \n\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 \n14 June 2011\n \nSarantel Group PLC\n \nIssue of Equity and Capital Reorganisation\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 429,540,000 New A Ordinary Shares at a price of 0.5 pence per share. \n \nThe Placing is conditional, inter alia, upon Shareholders approving certain of the Resolutions at the General Meeting of the Company to approve the Capital Reorganisation and 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 (\"Circular\").\n \nBackground to and reasons for the Placing \n \nThe Company's cash resources as at 30 September 2010 and 31 March 2011 were GBP0.6 million and GBP0.4 million, respectively. The proceeds of the Placing, which amount to approximately GBP2.0 million after expenses, provide the Group with additional working capital, permit the Group to expand its sales and marketing efforts and further invest in research and development. \n \nThe Directors believe that the Placing is the most appropriate means of providing financing for the Company and that it will allow the Group to capitalise on recent successes and progress future opportunities, particularly sales in the GPS and military markets taking full advantage of lower cost assembly processes with Elcoteq. As a result the Directors believe the outlook for the Company is very positive. \n \nShareholders should be aware that if Resolutions 1, 2 and 3 are not passed at the GM, the Group may not be able to continue trading without further financial resources being made available in the short term, in which case, the Board will have to consider all alternatives an...