Chandra PLC
17 February 2000
CHANDRA PLC ('Chandra')
Further to the announcement made on 18th January, 2000 and the
continued rise in the share price, Chandra announces that it has
entered into heads of agreement, which are non legally binding, save
for arrangements regarding costs and public announcements, which
would constitute a reverse takeover under the AIM rules.
Work is continuing on legally binding contracts for the acquisition,
which is intended to be financed entirely by an issue of new
ordinary shares in Chandra, together with associated documentation.
If successfully completed, the acquisition is likely to be
accompanied by a fund raising, at a substantial discount to the
current market price, to provide additional working capital.
A further announcement will be made as soon as practicable. In the
meantime, the directors of Chandra have requested that dealings in
Chandra's shares on AIM be suspended, pending the publication of
full details of the transaction.