Issue of Equity and General Meeting
18 May 2011
Image Scan Holdings plc
("Image Scan" or "the Company")
Issue of Equity and General meeting
The Board of Directors of Image Scan (the "Board") is pleased to announce that, following an approach by a strategic investor, Rise Step International Development Limited, ("Rise Step"), the Company has agreed a conditional placing of 15,000,000 ordinary shares (the "Placing Shares") at a price of 2 pence per share to raise gross funds of £300,000. The Placing is conditional upon the passing of the resolutions at the general meeting of the Company to be held on 21 June 2011.
Over the last two years the Company has followed a strategy to move away from being an R&D and custom solutions provider into a more commercial and customer focused organisation. Delivery of standard systems from stock has required the Company to increase its stock levels to support prompt turnaround of sales. This increase in stock requirement has inevitably placed more pressure on the working capital position of the Company, and this will increasingly be the case as the product range is extended further.
The Placing
Rise Step is a Hong Kong resident limited liability investment company whose sole director is Lu Qing. The Board understands that Rise Step believes there are opportunities for the Company's products in Asia and the Far East and wishes to invest in the Company to provide the focus for both reducing the cost of key components through overseas sourcing and for opening up routes to market in the region. The Board believes that the investment not only offers Image Scan necessary additional working capital but will also enable the Company to compete more effectively in the increasingly competitive security sector.
The Placing is for 15,000,000 Placing Shares at a price of 2 pence per share and is conditional on the passing of the resolutions at the GM. The Placing Shares being placed pursuant to the Placing will represent 20 per cent. of the Enlarged Share Capital following Admission which is expected to become effective on 28 June 2011.
The General Meeting
As you will be aware following the announcement of the Company on 17 March 2011 at the AGM of the Company held on that day the resolution in respect of the reappointment of Louise George, who retired from the Board of the Company by rotation, was defeated and she has therefore stood down from the Board. As the Company stated in that announcement, the remaining members of the Board are unanimously agreed that they should seek her reappointment to the Board of the Company and feel such reinstatement is essential to her ability to properly perform the role of Chief Executive Officer which she has continued to carry out. Accordingly the GM includes a resolution to reappoint Louise George to the Board.
In addition to these resolutions certain other resolutions are being put to shareholders seeking to alter the Articles of Association of the Company to enable it to apply the new electronic communications rules to documents and information sent under the Articles.
Circular
The Company has today sent a circular ("the Circular") to Shareholders providing further details of the matters above and convening a GM to be held on 21 June 2011 to consider the above proposals. A copy of the Circular can be obtained from the Company's' website, www.ish.co.uk.
-ENDS-
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1664 503 600
Brian Emslie, Chairman
Seymour Pierce Limited Tel: +44 (0) 207 107 8000
Sarah Jacobs / John Cowie - Corporate Finance
Paul Jewell - Corporate Broking
Seymour Pierce Limited, which is a member of the London Stock Exchange Plc and is regulated by the Financial Services Authority, is acting exclusively for Image Scan Holdings Plc as its nominated adviser. Seymour Pierce Limited will not be responsible to anyone other than Image Scan Holdings Plc for providing the protections afforded to clients of Seymour Pierce Limited nor for providing advice to any other person in connection with the contents of this announcement or the Circular.
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time 3D and 2D x-ray solutions for use in the global security and industrial inspection markets. The Company's security portfolio includes the Axis-3d® and Axis-2d baggage inspection systems for corporate and airport security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.
For further information on the Company, please visit: www.ish.co.uk - and for further information on its products, please visit: www.3dx-ray.com
This information is provided by RNS
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