Issue of Equity - Replacement
November 02 2010 - 9:40AM
UK Regulatory
TIDMBGTI
RNS Number : 4755V
BgenuineTec Inc.
02 November 2010
This announcement replaces the BgenuineTec Inc Issue of Equity announcement
released today at 11:10am under RNS number 4538V. In paragraph 4 the subscribing
amount is JPY 10.8m and not 108,000 as previously stated. All other details
remain unchanged. The full announcement text appears below.
FOR IMMEDIATE RELEASE
2 November 2010
BgenuineTec Inc
("BgenuineTec" or the "Company")
Placing of 8,333,334 new ordinary shares to raise JPY 50.0m
BgenuineTec Inc, the Japanese developer of biometric fingerprint authentication
technology, is pleased to announce that it has successfully raised JPY
50,000,004 (approximately GBP388,000) through the issue of 8,333,334 new
ordinary shares in the Company at the price of JPY 6 per new ordinary share
(approximately 4.6p per Share) (the "Placing Shares") to provide additional
working capital for the Company (the "Placing"). The Placing price represents a
discount of approximately 60% to the closing mid-market price on the 1 November
2010 of 11.5p (approximately JPY 14.9). Admission to trading on AIM of the
Placing Shares ("Admission") is expected to be on or around 8 November, 2010.
As stated in the recent interim results, BgenuineTec reported declining sales
and significant on-going losses which has required the Company to seek further
funding. The proceeds of the Placing will be used to meet certain outstanding
liabilities to various trade creditors. The Board will continue to seek further
funding necessary to secure the Company's future, and although discussions are
at an early stage, the Board is confident that it will be able to obtain such
funding and a further announcement will be made before the end of this year.
Infinity Holdings Inc. ("Infinity Holdings") is investing JPY 39.2m through the
subscription for 6,533,334 Shares in the Placing, representing approximately
6.63 per cent of the enlarged issued Shares in the capital of the Company.
Infinity Holdings isa Japanese investment company with holdings in over 30
companies.
In addition BgenuineTec's Chairman, Mr Taketoshi Kashiwabara, is subscribing JPY
10.8m for the remaining 1,800,000 Shares. As a result of the Placing, Mr.
Kashiwabara has a beneficial interest in 49,569,285 Shares, being 50.33 per cent
of the total issued Shares in the capital of the Company.
Mr Kashiwabara, a director and the Chairman of BgenuineTec, is deemed to be a
related party in connection with the Placing in accordance with Rule 13 of the
AIM Rules. The Directors of the Company, other than Mr Kashiwabara, having
consulted with the Company's Nominated Adviser, Charles Stanley Securities,
consider the terms of the transaction, to be fair and reasonable insofar as its
shareholders are concerned.
The Placing Shares will rank pari passu with the existing ordinary shares of the
Company. Following Admission of the Placing Shares the total number of Shares in
issue will be 98,487,155.
Exchange Rate Used 1GBP: JPY 129.40
For further information, please contact:
+--------------------------+---------------------------------+
| BGENUINETEC INC. | |
+--------------------------+---------------------------------+
| Taketoshi Kashiwabara, | Tel: +81-3-5652-0321 |
| Chairman | |
+--------------------------+---------------------------------+
| Kiwamu Shimizu, Chief | Tel: +81-3-5652-0321 |
| Financial Controller | |
+--------------------------+---------------------------------+
| | |
+--------------------------+---------------------------------+
| Charles Stanley | |
| Securities | |
+--------------------------+---------------------------------+
| Nominated Adviser | Tel: +44 (0) 20 7149 6000 |
+--------------------------+---------------------------------+
| Russell Cook/Dugald | |
| Carlean | |
+--------------------------+---------------------------------+
| | |
+--------------------------+---------------------------------+
| Walbrook PR Ltd | Tel: +44 (0) 20 7933 8780 |
+--------------------------+---------------------------------+
| Paul McManus | Mob: +44 (0) 7980 541 893 |
+--------------------------+---------------------------------+
| | Email: |
| | paul.mcmanus@walbrookpr.com |
+--------------------------+---------------------------------+
| Bob Huxford | Mob: +44 (0) 7747 635 908 |
+--------------------------+---------------------------------+
| | Email: |
| | bob.huxford@walbrookpr.com |
+--------------------------+---------------------------------+
Background on BgenuineTec
On 14 July 2006, BgenuineTec (under its original name of Secure Design) became
the first Japanese company to be admitted to trading on AIM. It offers
fingerprint authentication products to companies and individuals that wish to
establish high levels of security using biometrics. Biometrics uses a physical
attribute of the body, such as a fingerprint to identify and verify the
individual with the aim of making individual authentication efficient and
secure.
The Company offers a range of fingerprint authentication products and systems,
from an integrated system to a mobile device. The Company designs and outsources
the production of these products and can tailor them to individual client
specific needs and applications.
Biometric applications provide convenient and reliable security which reduces
the cost associated with the failure of conventional authentication methods. The
principal factor which distinguishes biometrics from conventional password based
authentication is the enhanced security level it provides while maintaining the
privacy of individual users.
The worldwide demand for biometrics is estimated to increase from just over $3
billion in 2007 to over $5.6 billion in 2010 (Biometrics Market and Industry
Report 2007-2012).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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