Issue of Equity

RNS Number : 8523B

Kenetics Group Limited

03 November 2009

 



3 November 2009

Kenetics Group Limited (the 'Company')

Issue of Equity

The board announces that, following a placing, 7,000,000 new ordinary shares of 1 pence each in the Company have been issued and allotted at a price of 2.75 pence per new ordinary share. The placing raised a total of £192,500, before expenses, and the funds will be used for working capital purposes.

Accordingly, application has been made for the new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 6 November 2009.

In the placing, Terrence Fuller, Ken Wong and Yeong Hin Yuen who are directors of the Company, have subscribed for 180,000, 1,935,600 and 1,290,400 new ordinary shares respectively. Following this transaction, their beneficial interest in the Company is as follows:

Directors	Previous shareholding	%	New shareholding	%
Terry Fuller	150,000	0.57%	330,000	0.99%
Ken Wong	11,818,025	44.85%	13,753,625	41.24%
Yeong Hin Yuen	4,536,550	17.22	5,826,950	17.47%

The issue of these new ordinary shares to directors is a related party transaction under the AIM Rules for Companies. Where a company whose shares are listed on AIM enters into a related party transaction, AIM Rule 13 requires the directors of the Company to consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. 

John Lynton Jones (being the only independent director) considers, having consulted with ZAI Corporate Finance Ltd, the Company's nominated adviser, that the terms of the related party transaction are fair and reasonable insofar as the Company's shareholders are concerned.

The new ordinary shares will rank pari passu with the existing shares of the Company. Following this allotment the total issued share capital of the Company will increase to 33,349,466 ordinary shares.

Further to the Company's interim report, which was announced on 16 September 2009, the Company provides the following revenue projections for its current and projected projects:

Financial year 2009:

• Smart Card Readers (Bus/Rail):       £0.2 million

• On-board Bus Equipment:                 £1.5 million

Financial year 2010 (projected):

• Smart Card Readers (Bus/Rail):       £0.6 million

• On-board Bus Equipment :                £3.4 million    

Financial year 2011 (projected):

• Smart Card Readers(Bus/Rail):        £0.96 million
• On-board Bus Equipment :               £4.4 million

Investors should be aware that past performance is no guarantee as to the future performance of the Company and that there can be no guarantee that the Company will achieve the level of success that the board expects.

Ken Wong, Chairman and CEO of Kenetics, said: "We are delighted with the completion of this placing and would like to thank both existing and new shareholders for their support.  

"The Placing gives us further working capital, and will help us to realise the massive potential Kenetics has. The placing also shows the confidence which investors have in Kenetics and our strategy, which against such an unsure economic background is very encouraging indeed. We look forward to driving the business forward during the coming year, and look forward to updating shareholders as to progress at our next opportunity. In order to continue along this growth strategy we also anticipate raising further capital in the new year."

For further information contact:

Ken Wong, Chairman and CEO Kenetics Group Limited	David Newton  ZAI Corporate Finance Ltd
Tel: [phone]	(Nominated Advisor)
Website:www.kenetics-group.com	Tel: [phone]
Alex Mattey / Ian Callaway SVS Securities (PLC)	Jeremy Carey / Andrew Dunn Tavistock Communications Ltd
(Broker)	Tel: [phone]
Tel: [phone]

 

END

 

 

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