Blue Star Capital plc
29 January 2007
29 January 2007
BLUE STAR CAPITAL PLC
('Blue Star' or 'the Company')
Investment of £150,000 in Izimi
On 12 September 2006 Blue Star Capital plc (AIM: BLU), the company created to
provide seed capital for early stage companies, announced an investment in
Izimi.com ('Izimi'), the innovative web-based software company that is currently
developing a free desktop software application that enables users to
self-publish adverts, media, documents and files on the internet, without the
need for a third party web site or hosting service.
Blue Star today announces that it is making an additional £150,000 investment in
Izimi, at a valuation of £5.08m. The investment is in the form of a subscription
for ordinary shares as part of a total placing of £580,000. Following this new
investment, Blue Star's aggregate investment in Izimi will be £300,000.
Izimi's applications are currently in a beta-testing phase, with an expected
launch in February 2007. As such, the company is not yet revenue generative.
Since its incorporation on 14 September 2005 Izimi has incurred development
losses of £690,896 and, as at 31 December 2006, the company had net assets of
£124,204.
Nigel Robertson, Blue Star's Chairman, is a shareholder and director of eSeekers
Limited, the holding company for Izimi. The proposed investment by Blue Star in
Izimi is, accordingly, deemed to be a related party transaction under the AIM
Rules.
Haresh Kanabar, has no connections with Izimi and is therefore independent of
the transaction. Mr Kanabar considers, having consulted with Teather & Greenwood
Limited, that the terms of the transactions are fair and reasonable insofar as
Blue Star's shareholders are concerned.
For further information:
Blue Star Capital plc
Haresh Kanabar, Chief Executive Tel: 020 7297 0010
Teather & Greenwood
Mark Dickenson Tel: 020 7426 9000
Holborn Public Relations Limited
David Bick Tel: 020 7929 5599
Notes:
Izimi is a free desktop software application that enables users to self-publish
adverts, media, documents and files on the Internet, without the need for third
party web site or hosting service.
Izimi has the functionality that enables people to find and socialise with
friends and customers, and to buy, sell, or exchange digital media content (user
generated content) or professional services. Izimi is both entertainment and a
means to earn money in return for digital content services.
Nigel Robertson is a Director of Izimi and also a substantial shareholder
holding 30.74% of the equity. Nigel Robertson is also a Director of Blue Star
Capital and holds 32.2% of the equity.
This information is provided by RNS
The company news service from the London Stock Exchange