Placing and Directors' Shareholdings

RNS Number : 1320Y

CareCapital Group plc

27 February 2012

 



 

27 February 2012

CARECAPITAL GROUP PLC

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

Placing to Raise £1.1 million

Directors' Shareholdings

CareCapital (AIM: CARE) announces that it has conditionally placed 71,656,272 new ordinary shares in the Company ("the Placing Shares") at a price of 1.5 pence per Ordinary Share, raising gross proceeds of £1.075 million (£1.037 million net), from institutional and other investors, including the Directors of CareCapital.

The net proceeds of the Placing Shares are to be used to provide additional resources to capitalise on opportunities in the cancer diagnosis and treatment market, building on the Group's 28.75% stake in Advanced Proton Solutions (Holdings) Ltd - the company that is pioneering the use of Proton Beam Therapy in the UK and which has secured planning approval for its first London based centre off Moorgate in the City of London, within easy access of a number of London's major hospitals.

The Placing is not conditional on approval by shareholders in a general meeting since CareCapital secured shareholder approval to recapitalise the Company at its recent Annual General Meeting held on 31 January 2012.  Application has been made for the Admission to AIM of the new ordinary shares issued and this is expected to become effective on 8 March 2012.  The Placing Shares, on Admission to AIM will represent approximately 48.3 per cent. of the Company's enlarged issued share capital, and will rank pari passu with the existing Ordinary Shares.

Certain of the Directors, detailed below, participated in the Placing, which is deemed to be a Related Party Transaction pursuant to AIM Rule 13.  The Director who is independent of this transaction, being Don Baladasan, considers, having consulted with the Company's Nominated Adviser, Libertas Capital Corporate Finance Limited, that the terms of the placing are fair and reasonable insofar as the Company's shareholders are concerned.  The Directors' participation and resultant beneficial holdings in the Company are as follows:

Name of Director	New shares acquired	Total holding in the enlarged share capital of the Company	% of enlarged issued share capital
Dr Michael Sinclair	14,666,667	31,670,121	21.34
Paul Stacey	4,666,667	9,005,031	6.07
Keith Gibbs	1,666,667	1,666,667	1.12
Lord Evans of Watford	1,666,667	1,666,667	1.12

The Placing Shares were placed with existing and new investors by Rivington Street Corporate Finance.

Commenting on the fundraise, Mike Sinclair, Chairman of CareCapital, said,"The Board and management team at CareCapital have almost completed the deleveraging of the Group that was our first priority in the strategy to restore value to shareholders.  Our historic core business of medical centre developments is being de-risked through the use of forward sales of pipeline developments.

"The Directors believe that our shareholding in Advanced Proton Solutions, a business we were instrumental in founding, could form the basis of a new division for CareCapital focused on the provision of leading edge - but clinically proven and in use - cancer diagnosis and treatment services.  We hope to make further announcements on our progress in this regard during the current financial year."

For further information please visit www.carecapital.co.uk or contact:

Mike Sinclair, Chairman Paul Stacey, Managing Director	Sandy Jamieson	Jon Levinson	Simon Hudson,
CareCapital Group Plc	Libertas Capital Corporate Finance Limited	Rivington Street Corporate Finance	Tavistock Communications
	(NOMAD & Joint Broker)	(Joint Broker)	(Financial PR & IR)
020 7034 1949	020 7569 9650	020 7562 3357	020 7920 3150

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