Business
Posting of Circular
Posting of Circular.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n Sarantel Group PLC\n28 June 2007\n\nPosting of Circular to Shareholders\n\n\n\nIntroduction\n\n\n\nFurther to the announcements on the 18 May 2007 and 6 June 2007 whereby the\nCompany announced that it was proposing to raise £2,130,000, before expenses by\nmeans of a proposed placing ('Placing'), the Company confirms that a circular \n('Circular') has today been posted to shareholders.\n\n\n\nThe Placing is conditional inter alia, upon shareholders passing the resolution\nat the Extraordinary General Meeting of the Company to approve an increase in\nthe authorised share capital of the Company and to grant to the Directors\nauthority to allot shares and power to disapply statutory pre-emption rights on\nallotment (the 'Resolution'), and upon the placing shares to be issued pursuant\nto the Placing being admitted to trading on AIM. The Resolution is contained in\nthe notice of EGM within the Circular.\n\n\n\nThe purpose of the Circular is to explain the background to and reasons for the\nPlacing and why the Directors believe the Placing is in the best interests of\nSarantel and its shareholders as a whole, and to recommend that shareholders\nvote in favour of the Resolution.\n\n\n\nBackground to and reasons for the Placing\n\nFollowing admission of the entire issued share capital of the Company to trading\non AIM in March 2005, the Company set out to implement its strategy and the\nfunds raised at that time have been used mainly to:\n\n• expand production capacity\n\n• improve production processes and reduce manufacturing costs\n\n• develop and launch new antennas\n\n• develop new business, and\n\n• fund working capital.\n\nSince floating on AIM, the Company has successfully launched two new products,\nthe satellite radio antenna and the second generation GPS antenna. The satellite\nradio antenna gave rise to the largest single order for antennas ever received\nby Sarantel, but follow-on orders were disappointing due to what the Directors\nbelieve was the poor commercial success to date of the portable satellite radio\ndevice. In GPS applications, the Company has announced a total of 28 design\nwins including successes with HP, TomTom and LG Telecom. However none of these\nproved to be high volume, despite initial indications. Recently, the Company has\nreceived a number of design wins in what the Directors consider ...