Business
Acquisition of MuCell and Share Placing
Acquisition of MuCell and Share Placing.
About this update from Zotefoams Plc
[{"type":"text","content":"\n \nRNS Number : 9695D Zotefoams PLC 31 March 2011 \n \n\nTHIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, JAPAN, CANADA, SOUTH AFRICA OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.\n \nThursday 31 March 2011\n \nZOTEFOAMS PLC\n \nAcquisition of outstanding 70 per cent. interest in MuCell Extrusion LLC; and\nPlacing of 1,534,219 new Ordinary Shares at 150 pence each \n \nZotefoams plc (\"Zotefoams\", or the \"Group\" or the \"Company\"), which manufactures and sells high-performance foams, is pleased to announce the completion of the purchase of the outstanding 70 per cent. interest in MuCell Extrusion LLC (\"MuCell\") not already held by the Group (the \"Acquisition\") and a placing of 1,534,219 new ordinary shares of 5 pence each (\"Ordinary Shares\") at 150 pence per Ordinary Share (the \"Placing Price\") to raise gross proceeds of approximately £2.3 million (the \"Placing\"). \n \nHIGHLIGHTS\n \n· Acquisition of remaining 70 per cent. interest in MuCell for total cash consideration of $7.5 million;\n· Initial cash payment of $4.0 million and deferred cash payments of $2.0 million and $1.5 million payable on or before 20 January 2012 and 30 July 2012, respectively;\n· Placing of 1,534,219 new Ordinary Shares at a price of 150 pence per new Ordinary Share;\n· Placing Price represents a 4.2 per cent. discount to the closing middle market price of 156.5 pence per Ordinary Share on 30 March 2011;\n· Placing Shares will represent approximately 3.85 per cent. of the Company's enlarged issued share capital immediately following completion of the Placing;\n· The net proceeds of the Placing will be used to partially fund the Acquisition and provide additional working capital for the Company;\n· The Acquisition is not conditional upon the Placing; and\n· Evolution Securities Limited acted as sole bookrunner and broker to the Company.\n \nCommenting on the Acquisiti...