Information  X 
Enter a valid email address

Toople PLC (TOOP)

  Print   

Monday 26 October, 2020

Toople PLC

Issue of Equity

RNS Number : 2201D
Toople PLC
26 October 2020
 

For immediate release: 26th October 2020

 

Toople PLC

 

("Toople" or the "Company")

 

Placing to raise £774,000

 

Toople PLC (LSE: TOOP), a provider of bespoke telecom services to UK SMEs, is pleased to announce that it has conditionally placed 704,010,226 new ordinary shares in the Company (the "Placing Shares") with institutional and other investors at 0.11p per share (the "Placing Price") to raise £774,000 (before expenses) (the "Placing").

 

The Placing was significantly oversubscribed and utilised all of the existing share issue capability of the Company.

 

The Net Proceeds of the Placing will used be to:

· provide further working capital to support the Company's growth;

· invest in targeted marketing initiatives;

· shorten the Company's anticipated timeline to profitability and positive cashflow; and

· enhance the Company's service offerings.

 

Toople Chairman Richard Horsman commented:

 

"The Company has made substantial operational and financial progress in recent months and securing this injection of capital leaves the Company with a healthier balance sheet and well capitalised to continue our growth strategy.  Given the general economic uncertainty in the UK and with the full impact of COVID 19 not yet fully clear, the Board felt it appropriate and prudent to take advantage of market demand. In addition, we are beginning to see acquisition opportunities as a result and we are well-placed to consolidate this market."

 

Andy Hollingworth CEO added:

 

"Importantly, we expect this funding to take the Company towards profitability and positive cash generation.  This market confidence in our strategy and the recent contract wins are further evidence that Toople is well placed to take advantage of the macro drivers which are expected to precipitate substantial growth for the Group, specifically HM Government's commitment to the rolling out of fibre telecommunication infrastructure to replace copper and the necessary and ultimately unavoidable upgrade of the country's network from 4G to 5G."

 

Completion of the Placing is conditional on, inter alia:-

 

(i)  the Placing Shares being admitted to listing on the Official List (standard listing segment) and to trading on the London Stock Exchange's main market for listed securities ("Admission") on 9 November 2020 (or such later date as may be agreed by the Company and Novum Securities); and

 

(ii)  the Placing Agreement between the Company and Novum Securities Limited not being terminated in accordance with its terms.

 

Applications will be made to the UK Listing Authority and to the London Stock Exchange for Admission in respect of all the Placing Shares.  It is expected that Admission will become effective, and that dealings in the Placing Shares are expected to commence, at 8.00 a.m. on 9 November 2020.

 

The rights attaching to the Placing Shares will be uniform in all respects and all of the Placing Shares will rank pari passu, and form a single class for all purposes with, the existing issued shares of 0.0667p each in the Company.

 

When the Company has the requisite regulatory authority, one warrant will be issued to placees for each share subscribed, exercisable at 0.2p per share with a three year life from date of their issue.  At the same time, Novum Securities Limited will be issued 35,200,511 warrants exercisable at the Placing Price.

 

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse  

-Ends-

For further information please visit www.toople.com or contact:

 

Toople PLC

Andy Hollingworth, Chief Executive Officer

Paul White, Chief Financial Officer

 

Tel: 0800 0499 499

Novum Securities Limited

David Coffman / Colin Rowbury / Jon Belliss

 

Tel: 020 7399 9400

Belvedere Communications

John West / Llew Angus

 

Tel: 020 3687 2754

 

About Toople PLC

 

Toople PLC is incorporated in the UK and listed on the main market of the London Stock Exchange. 

 

The business currently trades under four main brands:  www.toople.com www.dmsluk.co.uk broadbandandphones.co.uk www.checkthatcompany.co.uk .

 

Toople.com  provides bespoke telecoms services for its fast growing target market of UK SMEs with between one and 500 employees.  Services offered by the Group include business broadband, fibre, EFM and Ethernet data services, business mobile phones, cloud PBX and SIP Trunking and Traditional Services (calls and lines) all of which are delivered and managed via the Group's proprietary software platform. 

 

In February 2020, Toople completed the acquisition of  DMS Holding (DMSL) .  DMSL commenced trading in 2002 and provides unified communication services in the UK, ranging from a single phone line to a multi-site unified comms VoIP platform, delivered via a network of telecoms and IT carriers and content providers across the UK including BT Business, BT Global Services, Gamma, EE, Vonage, TalkTalk Business and O2.

 

DMSL acts as a BT Premier re-seller for broadband connectivity, mobile and fixed voice and cloud services and is responsible for over 250,000 BT customers and over 400,000 Revenue Generating Units.

 

The acquisition of DMSL was transformational for Toople, as it also expanded the Group's reach into the UK residential market, which is experiencing a period of rapid change, as operational automation further develops and more people choose to (or are forced to) work from home.

 

The Company also owns a telecoms price comparison website and a service offering company credit reference checking and reports.  These complement the Group's IT and telecoms services.

 

All the Group brands seek to differentiate themselves by offering IT, telecoms and broadband solutions, with robust and reliable packages, that enhance a customers' business and are based on trust and transparency, with no hidden fees within pricing policies.  This provides customers with a clear understanding of cost and fixed prices for the duration of their contracts.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IOELQLFLBBLBFBL

a d v e r t i s e m e n t