8 October 2009
PipeHawk Plc
("Pipehawk" or the "Company")
Subscription to raise £120,000 and Director's loan
The Company announces that it has raised £120,000 by way of a
subscription of 1,500,000 new ordinary shares ("Ordinary Shares")
("the Subscription Shares") at 8p per Subscription Share (the
"Subscription Price") with existing shareholders and other investors
("the Subscription"). The Subscription is conditional on admission to
trading on AIM ("Admission").
In addition, Gordon Watt, Chairman of the Company, has provided a
loan of £100,000. Mr Watt intends to convert the loan into Ordinary
Shares at the Subscription Price or the mid-market closing price of
the Company's Ordinary Shares on the day prior to conversion, if
greater, following the announcement of the Company's results for the
financial year ended 30 June 2009.
The Subscription
PipeHawk intends to use the proceeds of the Subscription for working
capital generally.
The Subscription is conditional upon Admission. The Subscription
Shares, when issued and fully paid, will rank equally in all respects
with the Ordinary Shares, including the right to receive all
dividends and other distributions declared, made or paid after
Admission.
Application has been made to the London Stock Exchange for the
admission to trading on the AIM market of 1,500,000 Ordinary Shares.
It is expected that Admission will become effective and dealings in
such shares will commence on 16 October 2009.
Following the admission of the above shares, the Company will have
28,437,181 Ordinary Shares in issue.
Related party transaction
Gordon Watt, Chairman of the Company, has provided a loan of £100,000
to the Company. The loan is unsecured and interest free.
Mr Watt has confirmed that it is his intention to convert the loan
into Ordinary Shares at the Subscription Price or the mid-market
closing price of the Company's Ordinary Shares on the day prior to
conversion, if greater, following the announcement of the Company's
results for the financial year ended 30 June 2009. The Directors'
anticipate that the results will be announced during November 2009.
The Directors, other than Gordon Watt, consider, having consulted
with the Company's nominated adviser, that the terms of the loan and
its conversion into new Ordinary Shares are fair and reasonable
insofar as the Company's shareholders are concerned.
A further announcement relating to the conversion of the loan will be
made in due course.
Enquiries:
PipeHawk Plc
Gordon Watt
(Chairman)
01420 590 990
John East & Partners Limited, a subsidiary of Merchant Securities PLC
David Worlidge
Simon
Clements
020 7628 2200
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