REG - Toople PLC - Proposed placing to raise £2.2 million

ToopleAnnouncement

11/09/2018 07:05

RNS Number : 3353A
Toople PLC
11 September 2018
 


For release: 07:00, 11 September 2018
 
Toople PLC
("Toople" or the "Company")
 
Proposed placing of 733,333,333 Placing Shares to raise £2.2 million
 
Toople PLC (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, is pleased to announce that it has conditionally placed 733,333,333 new shares in the Company (the "Placing Shares") with institutional and other investors at 0.3p per share (the "Placing Price") to raise £2.2 million (before expenses). The placing was oversubscribed.
 
The Net Proceeds of the Placing will used be to:
·      fund the working capital requirements of the Company;
·      invest in targeted marketing initiatives which seek to grow revenue and delivery future return on capital;
·      enhance the Company's service offerings;
·      fund the identification of potential 'bolt-on' acquisitions, which the Company deem to be earnings enhancing and fit with Company's stated strategy.
 
Toople CEO, Andy Hollingworth commented:
 
"We are delighted to announce this over-subscribed placing.   The Company has made great operational and financial progress in recent months and securing this injection of capital leaves the Company with a healthier balance sheet and well capitalised to continue our growth strategy.  Importantly, we expect this funding to see the Company through to positive cash flow generation and to provide us with a stable financial platform to exploit the new business pipeline we are creating."
 
Completion of the Placing is conditional on, inter alia:-
 
(i)        approval by the UK Listing Authority of a prospectus to be published by the Company in connection with the Placing (the "Prospectus") and the publication by the Company of the Prospectus in accordance with the Prospectus Rules; and
 
(ii)       the Placing Shares being admitted to listing on the Official List (standard listing segment) and to trading on the London Stock Exchange's main market for listed securities ("Admission") on 25 September 2018 (or such later date as may be agreed by the Company, Novum Securities and Turner Pope Investments).
 
Certain Directors have agreed for a portion of the fees and remuneration owed to them to be settled through the issue of the Fee Shares. Fees of approximately £51,400 in aggregate are to be settled in this way at the Placing Price.
 



Director


Outstanding remuneration and fees owed to be settled through the issue of the Fee Shares
(£)






Number of Fee Shares to be issued in lieu of remuneration and fees owed








Richard Horsman


25,500






8,500,000








Geoffrey Wilson 


14,000






4,666,666








Kevin Lawrence 


11,900






3,966,666





























 
 
Applications will be made to the UK Listing Authority and to the London Stock Exchange for Admission in respect of all the Placing Shares and the Fee Shares.  It is expected that Admission will become effective, and that dealings in the Placing Shares are expected to commence, at 8.00 a.m. on 25 September 2018.
 
The rights attaching to the Placing Shares will be uniform in all respects and all of the Placing Shares will rank pari passu, and form a single class for all purposes with, the existing issued shares of no par value in the Company.
 
Copies of the Prospectus to be published by the Company in connection with the Placing will be available on the Company's website at https://www.toople.com/ and hard copies will also be available at the offices of the Company's financial adviser Cairn Financial Advisers LLP, Cheyne House, Crown Court, 62-63 Cheapside, London, EC2V 6AX. The Prospectus will also be available at the FCA's Document Storage Mechanism at http://www.morningstar.co.uk/uk/NSM.
 
This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse 
-Ends-
 
For further information please visit www.toople.com or contact:



 
Toople PLC


 
Tel: 0800 0499 499




Andy Hollingworth, Chief Executive Officer








Cairn Financial Advisers LLP
David Coffman / Richard Nash
 


Tel: 020 7213 0880




Novum Securities Limited
Colin Rowbury
 


Tel: 020 7399 9400




Turner Pope Investments Limited
Andy Thacker      
 


Tel: 020 3621 4120




Belvedere Communications
John West
 


Tel: 074 070 23147



About Toople PLC
Toople Plc, a company incorporated in the UK provides a range of telecoms services primarily targeted at the UK SME market. Services offered by the Group include business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and Traditional Services (calls and lines) all of which are delivered and managed through Merlin, the Group's proprietary software platform.
The Group is differentiated by its focus on creating business broadband solutions, with robust and reliable packages that will enhance our customers company's. In addition, our vision is based on trust and transparency, with no hidden fees within our pricing policy providing customers with a clear understanding of cost.
Toople Plc has a strong and highly experienced Board and management team who are focused on growing the business both organically and by identifying earnings enhancing strategic acquisition opportunities.




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