16 July 2010
Cinpart PLC CINP Issue of Equity
Cinpart, which supplies cutting-edge voltage optimisation technology to reduce the energy consumption and CO₂ emissions of commercial buildings, is pleased to announce that it has completed a placing of 19,871,425 new Ordinary Shares (the "Placing Shares") at 7 pence per share in the capital of the Company (the "Placing"). The Placing, with institutional and other investors introduced by Jendens Securities Limited and Rivington Street Corporate Finance Limited, the Company's joint brokers, have raised a total of £1.39 million before expenses.
The net proceeds of the Placing amounting to approximately £1.32 million will be used to support the Company's sales and marketing efforts in the UK and to provide working capital generally in order to build on the progress made to date. The Directors believe that there continues to be significant opportunities for growth, underpinned by the strengthening UK sales pipeline and Cinpart's relationships with Southern Electric Contracting Ltd ("SEC") and its new overseas partners.
The Placing Shares represent 18.6 per cent. of the enlarged issued share capital and following the issue of the Placing Shares, Cinpart will have 106,865,823 Ordinary Shares in issue. The Placing is conditional upon admission of the Placing Shares to trading on AIM. Application has been made for the new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on 22 July 2010. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares.
As part of the Placing the Company has granted warrants to Jendens Securities Limited over 304,286 new ordinary shares which are exercisable at the Placing price until 15 July 2012.
Philip Palmer, Christopher Foster and Kevin Baker, directors of the Company, are subscribing in the Placing for 214,285, 285,714 and 142,857 Ordinary Shares respectively.
As a result of the Placing and following admission of the new Ordinary Shares the interests of the Directors will be:
| Name | Number of Ordinary Shares | Percentage of enlarged issued share capital |
|---|---|---|
| Philip Palmer | 3,753,632 | 3.51% |
| Christopher Foster | 7,810,785 | 7.31% |
| Kevin Baker | 906,003 | 0.85% |
Kevin Baker, Chief Executive of Cinpart, commented;
"In a challenging economic environment for small cap companies we are very pleased with the support we have received from both new and existing investors. We believe that there are exciting opportunities available to us both in the UK and internationally and this placing will help us to deliver further growth going forward."
ENDS