Business
Proposed placing
Proposed placing.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n RNS Number : 7021C Zoo Digital Group PLC 04 September 2008 \n \nFor immediate release: 4 September 2008\n\nZOO DIGITAL GROUP PLC\n('ZOO', 'the Company')\n\n\nPROPOSED PLACING OF 3,413,333 PLACING SHARES AT 15 PENCE PER SHARE\n\n\nZOO Digital Group plc, (AIM: ZOO) the digital media production technology group, announces today that it proposes a capital raising by conditionally placing 3,413,333 new ordinary shares of 15p each in the Company ('Placing Shares') at a placing price of 15p per share (the 'Placing Price') to raise approximately £512,000 before expenses (the 'Placing'). The Placing Shares will, when issued, represent 16 per cent. of the enlarged issued share capital of the Company following completion of the Placing. \n\nThe Placing Price of 15 pence per Placing Share represents a premium of 25 per cent. to the closing middle market price of 12 pence per ordinary share on 3 September 2008, being the last business day before announcement of the Placing. \n\nReasons for the fundraising and use of proceeds\n\nThe proposed fundraising is to provide the Company with additional working capital resources. The board of directors of the Company ('Board') believes that the additional working capital will enable the Company to continue to develop the business without undue constraint. \n\nThe Company has also today announced its preliminary results for the year to 31 March 2008. Full details on the final results are contained in a separate announcement.\n\nSettlement and dealings \n\nDue to the size of the issue of the Placing Shares relative to the Company's existing authority to allot securities for cash on a non pre-emptive basis the issue of the Placing Shares is conditional upon the passing of certain resolutions which are to be proposed at the Company's eighth annual general meeting which is to be held on 6 October 2008 at 11.00 am at The Tower, 2 Furnival Square, Sheffield S1 4QL ('AGM'). Accordingly, the Board is seeking shareholders' approval to dis-apply pre-emption rights at the AGM to the extent required to, amongst other things, facilitate the Placing. If the necessary resolutions are passed at the AGM, it is expected that application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that the Pla...