West 175 Media Group Inc
01 April 2005
West 175 Media Group Inc
Placing to raise £1,040,000 and grant of options
West 175 Media Group Inc ('West Inc') announces that it has raised £1,040,000
before expenses by a placing of 130,000,000 new shares of common stock of no par
value ('Shares') at 0.8 pence per Share (the 'Placing'). This is equivalent to
approximately £985,000 after expenses.
Application has been made for the new Shares to be admitted to AIM and trading
is expected to commence on Thursday 7 April.
West Inc underwent a Creditors' Voluntary Arrangement in the summer of 2004 and
is currently a cash shell. The Directors are actively seeking a suitable new
activity for the company. Before the Placing, West Inc had cash balances
amounting to approximately £264,000. The net proceeds of the Placing will be
used to increase the cash resources available to West Inc, which after the
Placing will amount to approximately £1,249,000.
Before the Placing, the issued share capital of West Inc was 161,957,470 shares.
The new Shares are equivalent to approximately 44.5 per cent. of the current
issued share capital. Following the Placing, the issued share capital has been
increased to 291,957,470 shares.
Grant of Options
In order to conserve cash resources within West Inc, the Directors have, since
30 November 2004, ceased to draw any fees or other remuneration. To compensate
the Directors for their ongoing services, West Inc has granted each of David
Montgomery, John Gunn and Charles Sebag-Montefiore options over 2,700,000 shares
at an exercise price of 1 penny per share. In aggregate, the grants amount to
8,100,000 shares, equivalent to approximately 2.8 per cent. of the issued share
capital as enlarged by the placing of new Shares.
Exercise of these options is conditional on the performance criterion of
shareholders having approved a reverse acquisition at an appropriate
Extraordinary General Meeting.
Following the Placing and the grant of options, the directors' interests in the
shares of the company are as set out below:
Number Number Number
of shares %* of options of warrants
David Montgomery 1,083,333 0.37 2,700,000 4,888,889
John Gunn 39,086,107 13.39 2,850,000 2,142,389
Charles Sebag-Montefiore 1,652,541 0.57 2,744,720 571,556
* The percentage number of shares is calculated on the issued share capital
after the Placing.
This information is provided by RNS
The company news service from the London Stock Exchange