Equity Fundraising of ?750,000

RNS Number : 3899S

Hardide PLC

21 November 2011

 



Press Release

21 November 2011

Hardide plc

("Hardide" or "the Group")

Equity Fundraising of £750,000

Hardide plc (AIM: HDD), the provider of unique surface engineering technology, is pleased to announce that it has raised £750,000 from the issue of 125,000,000 new ordinary shares of 0.1p each ("New Ordinary Shares") at 0.6p per share in a Placing (the "Placing") with existing and new investors through its broker Brewin Dolphin Limited.

The New Ordinary Shares, which constitute 15 per cent of the current issued share capital, have been issued under the authority granted at the Group's most recent Annual General Meeting.  Application has been made for the New Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 25 November 2011.

The Group intends to use the net Placing proceeds in:

•     Expansion of working capital to facilitate near-term sales growth;

•     Modest capital expenditure;

•     Improving its balance sheet;

•     Investigating new markets for Hardide.

Robert Goddard, executive chairman, commented:  "The Board is confident that the Group is well positioned to capitalise on the continually expanding range of applications for the Hardide technology.  We plan to investigate certain markets more thoroughly and undertake modest capital expenditure investment to enable us to grow sales further."

A Badenoch & Associates and R Boyce & Associates, existing Substantial Shareholders in the Group currently holding 28.78% and 29.53% respectively of Hardide's issued share capital, have participated in the Placing as to 7,734,000 shares and 7,734,000 shares respectively. Following the Placing, A Badenoch & Associates will hold 247,800,667 shares representing 25.84% of the enlarged issued share capital and R Boyce & Associates will hold 254,046,225 shares representing 26.49% of the enlarged issued share capital. Consequently the Placing of shares with these shareholders represent related party transactions under AIM Rule 13. The directors, having consulted Seymour Pierce, the Group's nominated adviser, consider that the terms of these transactions are fair and reasonable insofar as shareholders are concerned.

Application will be made for the New Ordinary Shares issued pursuant to the Placing to be admitted to trading on AIM and it is anticipated that Admission will become effective and that dealings will commence on 25 November 2011.

Following the Placing, the number of Ordinary Shares in issue will increase to 959,042,238 ordinary shares. As there are no shares held in treasury, the total number of voting rights in the Group is 959,042,238. This figure may be used by shareholders in the Group as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest under the Disclosure and Transparency Rules.

Ends

For further information:

Hardide plc
Robert Goddard, Executive Chairman Jackie Robinson, Communications Manager [e-mail]	Tel: [phone] www.hardide.com
Seymour Pierce Limited (Nominated Adviser)
Guy Peters [e-mail]	Tel: [phone] www.seymourpierce.com
Brewin Dolphin Limited (Broker)
Neil Baldwin [e-mail]	Tel: [phone] www.brewin.co.uk

Hardide Coatings

Hardide provides and applies tungsten carbide-based coatings to a wide range of engineering components.  The Group's patented technology is unique in that it combines both abrasion and corrosion resistant properties in one coating.  When applied to components, the technology is proven to offer dramatic cost savings through reduced downtime and extended component life.  Customers include leading companies operating in oil and gas exploration and production, valve and pump manufacturing, general engineering and aerospace.  

 

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