REG - Pelatro PLC - Subscription to raise £1.1m and Issue of Equity

PelatroAnnouncement

14/08/2023 07:00

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RNS Number : 1430J  Pelatro PLC  14 August 2023

14 August 2023

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018). Upon the publication of this
announcement via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.

 

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THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE OR
CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY
PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES IN
PELATRO PLC OR ANY OTHER ENTITY IN ANY JURISDICTION.

 

 

 

Pelatro Plc

 

("Pelatro", the "Group" or the "Company")

 

Subscription to raise £1.1m & Issue of Equity

 

Introduction

 

As announced on 18 July, the Group has been experiencing delays in collection
of a number of significant receivables with a resulting impact on working
capital such that, based on certain assumptions (including over what time
frame these receivables were collected) and management forecasts, the Group
would require additional external funding in the final quarter of this
financial year.  Consequently the Board was prudently exploring financing
options to raise working capital.

 

The Board is pleased to announce that it has raised £1.1m by way of a direct
subscription ("Subscription") of 44.7m new ordinary shares (New Ordinary
Shares or Subscription Shares) in the Company with a number of new investors
based in the Middle East. This funding will support the Company's working
capital as it seeks to collect receivables as well as add new customers.

 

Details of the Subscription

 

The Company is proposing to raise approximately £1.1 million (before
expenses) pursuant to the Subscription by way of the issue of 44,700,000 New
Ordinary Shares at an issue price of 2.5 pence per Ordinary Share (the "Issue
Price").

 

The Issue Price equates to a discount of 30 per cent. to the closing price of
3.25 pence on 11 August 2023, the latest Business Day prior to the
announcement of the Subscription.

 

The Company is utilising its existing share authority approved by the
Company's existing shareholders at the time of its AGM on 23 July 2023.
Therefore, the Company is not required to seek shareholder approval or
authority to complete the Subscription.

 

The Subscription has been arranged by Divit Advisors, an investment bank based
in Dubai. The new investors participating in the Subscription comprise a
number of high net worth individuals who are clients of Divit Advisors, based
in the Middle East. None of the subscribers will individually hold in excess
of 10 per cent. of the enlarged issued share capital.

 

Application for Admission

 

Application has been made for the New Ordinary Shares to be admitted to
trading on AIM and dealings are expected to commence on 17 August 2023
("Admission").

 

The New Ordinary Shares will rank pari passu with the Company's existing
Ordinary Shares. The total number of Ordinary Shares in issue following
Admission will be 93,562,431. The Company does not hold any shares in
treasury. Accordingly, the figure of 93,562,431 may be used by shareholders as
the denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in the
Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Details of Concert Party Holdings and Director Holdings

Certain existing shareholders have been deemed to be acting in concert under
the rules of the Takeover Code (the "Concert Party"). No members of the
Concert Party are participating in the fundraise. Full details of the Concert
Party shareholdings can be found in the table below:

 

 Name                    Number of              % of existing Issued Share Capital  Number of Subscription Shares being subscribed for  Amount Subscribed  Interest in Ordinary Shares post Subscription  % of Enlarged Issued Share Capital

                         Ordinary Shares held
 Bannix Management LLP*  12,933,553             26.47%                              -                                                   -                  12,933,553                                     13.82%
 Ravi Shanmugam          716,240                1.47%                               -                                                   -                  716,240                                        0.77%
 Total                   13,724,406             27.94%                              -                                                   -                  14,724,406                                     14.59%

*Bannix Management LLP consists of Subash Menon, (9,684,244 Ordinary Shares),
Sudeesh Yezhuvath (3,309,309 Ordinary Shares) and Suresh Yezhuvath (14,613
Ordinary Shares)

 

The Admission of the Subscription Shares will result in the combined concert
party shareholding being diluted from 27.9% to 14.6%.

 

Use of proceeds and impact of the Subscription

 

The funding will support the Company's near term working capital requirements
as it seeks to collect receivables as well as add new customers.

 

 

Subash Menon, CEO of Pelatro Plc, said: "We are delighted to obtain support
from new investors who believe in the long term potential of the company.
These funds will help us to continue our growth and help improve our working
capital."

 

For further information contact:

 

 Pelatro Plc
 Subash Menon, Managing Director                  c/o finnCap
 Nic Hellyer, CFO

 finnCap Limited (Nominated Adviser and Broker)   +44 (0)20 7220 0500
 Carl Holmes/Milesh Hindocha (Corporate Finance)

 

 

 

 

 

For more information about Pelatro, visit www.pelatro.com

 

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