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Legendary Invest PLC (LEG)

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Tuesday 08 April, 2014

Legendary Invest PLC

Investee Company Update

RNS Number : 3150E
Legendary Investments PLC
08 April 2014

8 April 2014

Legendary Investments Plc ("Legendary" or the "Company")

Investee Company Update - Virtual Stock Holdings Limited ("VSHL") Raises Growth Funding at a Valuation of £25.4 million pounds

Legendary is pleased to announce that its investee company VSHL, following on from significant contract wins, has raised £525,000 through an oversubscribed issuance of equity ("Transaction") to accelerate its growth. The Transaction places a post money value on VSHL of £25.4 million. VSHL provides a cloud-based software as a service which enables retailers to increase dramatically the range of products they sell online without the associated costs of and risks of holding stock.

The funds will be used by VSHL to support rapid growth in the retail sector and build opportunities in additional sectors.

As part of the Transaction, which is seen by VSHL as the first in a series of potential strategic transactions, the holding structure of VSHL has been simplified and new articles have been put in place.

Legendary acquired a 2.5% stake and a warrant for a further 2.5% in VSHL in October 2012 for £53,000. The warrant has an exercise price of £75,000. The Transaction values the Legendary's equity stake and warrant at £1.2 million representing a return of 11.1x on the equity investment and 7.8x the warrant exercise price.

As part of the Transaction, Legendary has negotiated further warrants over new shares and options over existing shares of VSHL representing 1.2% of the fully diluted equity of VSHL, with an exercise price per share of the current placing price. In aggregate, following the Transaction, Legendary's equity, warrant and option interest in VSHL has risen from 5.0% to 5.6% of the fully diluted equity of VSHL.  

Zafar Karim, Executive Chairman of Legendary, said "We are delighted with the progress being made at VirtualStock. Its oversubscribed growth equity capital raise and its significant customer wins over the last several months underline investors' and VSHL's customers' confidence in the company.

"We are particularly pleased that Legendary has been able to negotiate further warrants and options for itself which will increase its equity, warrant and option interest in VSHL, despite the dilution inherent in the the growth equity fund raise.

"Legendary has proactively supported and assisted VSHL to reach this stage in its development and growth, and looks forward to continuing to do so. As VSHL continues to develop, VSHL anticipates further significant developments and strategic transactions in the near to medium term, including further value crystallisation and potential value realisation."

-     Ends-

For further information, please contact:

Legendary Investments Plc

Zafar Karim / Thomas Reuner


020 8201 3536

Grant Thornton UK LLP


Colin Aaronson/ Melanie Frean / Jen Clarke

020 7383 5100

Beaufort Securities Limited


Saif Janjua

020 7382 8300

SI Capital                


Nick Emerson/ Andrew Thacker

01483 413500

Newgate Threadneedle

Caroline Forde

020 7653 9850


About Legendary Investments Plc

Legendary Investments Plc is a proactive investment company that focuses on making investments in and assisting companies which exhibit the potential to generate returns of many multiples through capital appreciation.  Typically, Legendary invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy and natural resources.

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This information is provided by RNS
The company news service from the London Stock Exchange

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