Publication of Prospectus

RNS Number : 8388Z

Edinburgh Dragon Trust plc

20 January 2011

 



20 January 2011

EDINBURGH DRAGON TRUST PLC

Publication of prospectus

Edinburgh Dragon Trust plc ("the Company") has today published a prospectus ("Prospectus"), approved by the UK Listing Authority, for the purpose of seeking admission to the standard debt segment of the Official List and to trading on the London Stock Exchange's main market for listed securities of up to an additional £10 million nominal of 3.5 per cent. convertible unsecured loan stock 2018 ("CULS").

On 9 December 2010 the Company launched a Placing and Open Offer for up to £50 million nominal of CULS, at an issue price of 100p per nominal unit ("the Issue").  The Issue was approved by shareholders at a general meeting of the Company held on 11 January 2011.

Valid applications under the Open Offer were received for £15.8 million nominal of CULS and were satisfied in full.  Placing commitments, which exceeded the £50 million available under the Issue, were subject to scaling back and no applications under an excess application facility available to shareholders were fulfilled as the Issue was fully subscribed by applications under the Open Offer and through commitments under the Placing.  £50 million nominal of CULS was issued and dealings commenced on 12 January 2011.

As a result, the Company had unfulfilled demand under the Issue which further issues of CULS might be able to fulfil.  In light of the perceived secondary market demand for CULS, the Board has taken the decision to proceed with potential further issues of up to £10 million nominal of CULS, as the Board indicated it would consider doing in the circular published by the Company on 9 December 2010.

Further issues will be dependent on demand for CULS in the secondary market and the ability to issue further CULS at a price (at or around the prevailing market price for CULS at the time of issue) that will cover any costs of issue and not be dilutive to the value of existing investors' interests.  Any premium in the prices paid over nominal value (after deducting any costs of issue) will be for the benefit of the Company.  There can be no guarantee that the Company will issue further CULS.  Further issues will be made pursuant to the annual allotment authorities obtained at the Company's annual general meeting held on 8 December 2010.  It is expected that these CULS will be made available to the secondary market by issuing them through the Company's broker, Winterflood Securities.  These CULS will have the same conversion price as, and will rank pari passu with, the CULS issued on 12 January 2011 and will be issued credited as fully paid.  Capital and income dilution will be avoided through the prices paid for any further issues.

The Company has made a block listing application for £10 million nominal of CULS to be admitted to the standard debt segment of the Official List and to trading on the London Stock Exchange's main market for listed securities.

A copy of the Prospectus will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.hemscott.com/nsm.do.

The Prospectus will also shortly be available for download from the Company's website, www.edinburghdragon.co.uk.

Enquiries:

James Moseley/Robin Archibald, Winterflood Securities 020 3100 0250/0290

William Hemmings/Ian Massie, Aberdeen Asset Managers Limited 020 7463 6223/0131 528 4123

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