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Craven House Capital (CRV)

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Thursday 05 January, 2012

Craven House Capital

Investment in Pressfit Holdings Plc

RNS Number : 0673V
Craven House Capital PLC
05 January 2012
 



5 January 2012

Craven House Capital Plc

(the "Company")

 

Investment in Pressfit Holdings Plc

 

The Company today announces that it has agreed to purchase 1,387,507 shares in Pressfit Holdings Plc ("Pressfit") (representing approximately 4.5% of the Company's issued share capital) from an existing shareholder at 9.875p per share, amounting to an aggregate consideration of circa £137,000. This purchase of shares is conditional upon the shareholder subscribing for 10,961,305 new ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") for 1.25p per share.

 

Pressfit is an unquoted UK public limited company with Hong Kong and Chinese subsidiaries, which manufactures and distributes thin walled stainless steel and carbon steel press fittings used in water and gas applications. Further information about Pressfit can be found at http://pressfitholdings.com/.

 

The Company previously announced on 7 September 2011 that it had entered into a £95,000 convertible loan agreement with Pressfit. The loan is convertible, at the Company's discretion, into 961,849 fully paid ordinary shares of 0.25 pence per share (representing 3% of Pressfit's share capital after enlargement) at a conversion price of 9.875 pence per share. Interest is payable on the loan at an annual rate of 8% per annum.

 

Mark Pajak, Acting Chairman, commented, "We are very pleased to announce this additional investment in Pressfit, which follows the previously announced convertible loan facility provided in September 2011. We are very excited about Pressfit's growth prospects as it expands its client base throughout China and into Europe. Pressfit benefits from an excellent management team and a disciplined growth strategy founded on their distinct competitive advantages.

In addition, we very pleased to secure this investment utilising our shares as currency - a clearly defined and central aspect of our investment strategy. This transaction and the previous investment in Farm Lands of Guinea valued the Company's shares at 1.25p per share. The Company's ability to secure transactions at a premium to the current market price, such as the capital raise at 1.25p in June, underline the belief in the Company's future growth prospects. 

We view our investment in Pressfit as a long-term strategic holding and we look forward to supporting this company further as they deliver on their plans for growth."

 

Application has been made to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on AIM. Admission is expected to take place on 11 January 2012. The shares will rank pari passu with the existing issued ordinary shares.

 

Following the issue of the new ordinary shares, the Company's total issued share capital will consist of 291,086,971 ordinary shares with each share carrying the right to one vote. The Company has no ordinary shares held in treasury. The total of 291,086,971 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

 

 

For further information please contact:

 

Craven House Capital Plc

Alexandra Eavis

 

     020 7002 1491

Daniel Stewart & Company (Nominated Adviser and Broker)

Antony Legge / James Thomas

020 7776 6550

 

www.cravenhousecapital.com 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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