Issue of Equity
March 08 2010 - 12:58PM
UK Regulatory
TIDMCGA
RNS Number : 2659I
China Gateway International PLC
08 March 2010
FOR IMMEDIATE RELEASE
8 March 2010
China Gateway International PLC
("CGI" or "the Company")
Issue of Equity
CGI is pleased to announce that it has issued 2,142,858 new ordinary shares
("the Shares") at a price of 14 p per Share, that price being a 20 % discount to
the last reported deal in the Company's shares, which was 17.5p on 22 February
2010. The subscription will raise GBP300,000 in cash before expenses. This
amount will be used primarily to pay interest due on the Company's loan facility
from Israel Discount Bank with the balance to be used for general working
capital purposes.
The issue is wholly to three related parties, with equal amounts of GBP100,000
(714,286 Shares) being subscribed by Omega Properties Limited, a company
associated with Ken Wills, a director of the Company, which owns 28.21% of the
Company's issued share capital, by Blenheim Limited, a company associated with
Christopher Seymour Prosser, a director of the Company, which owns 28.2% of the
Company's issued share capital and by Laxey Partners Limited, which holds 22.92%
of the Company's issued share capital and accordingly the subscription
constitutes a "related party" transaction under the AIM Rules.
The Directors with the exception of Ken Wills and Christopher Seymour Prosser
who as described above are involved in the transaction, having consulted with
the Company's Nominated Adviser, consider that the terms of the subscription are
fair and reasonable insofar as its shareholders are concerned.
Application will be made for the new ordinary shares, which will rank, pari
passu with all existing ordinary shares, to be admitted to trading on AIM.
Trading is expected to commence on or around 15 March 2010.
Following the subscription the interests of the subscribers and the Directors
involved in the transaction will be as follows:
+---------------+---------------+---------------+---------------+
| Name | Related Party | Participation | Resulting |
| | | | holding |
+---------------+---------------+---------------+---------------+
| Laxey | Substantial | 714,286 | 5,887,520 |
| Partners | shareholder | | (23.82%) |
+---------------+---------------+---------------+---------------+
| Omega | Directors' | 714,286 | 7,083,579 |
| Properties | interests | | (28.66%) |
| Limited * | | | |
+---------------+---------------+---------------+---------------+
| Blenheim | Directors' | 714,286 | 7,083,579 |
| Limited ** | interests | | (28.66%) |
+---------------+---------------+---------------+---------------+
* The shares in Omega Properties Limited are registered in the name of F&A
Services Limited, a company incorporated in Malta, which holds them on
discretionary trust for a class of beneficiaries which includes Ken Wills,
Director and CEO of CGI.
** The shares in Blenheim Limited are registered in the name of F&A Services
Limited, a company incorporated in Malta, which holds them on discretionary
trust for a class of beneficiaries which includes Chris Seymour-Prosser, the
Managing Director of CGI.
Following the issue of Shares, Ken Wills will have interests in 7,083,579
shares or 28.66% of the share capital (including the shares held by Heritage
Building Limited) in the Company, and Chris Seymour-Prosser will have interests
in 8,776,524 shares, or 35.51% of the share capital in the Company
Commenting on the subscription, Robin Bolton, CGI's chairman, said "This
subscription is in accordance with an agreement with Israel Discount Bank to
enable the Company to pay interest and, in conjunction with the recently
announced sale of the Dover Properties, reduce its total indebtedness. I am
grateful to both IDB and the subscribers for their continued support for CGI".
Ends
For further information, please contact:
+-------------------------------+-------------------------------+
| China Gateway International | |
| PLC | +44 (0) 1843 822444 |
| Ken Wills | |
| | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Beaumont Cornish Limited | |
| Roland Cornish | +44 (0) 20 7628 3396 |
| | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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