Placing
August 08 2005 - 3:01AM
UK Regulatory
Embargoed release: 07:00 hours Monday 8 August 2005
MKM Group plc
Proposed placing and open offer
Further to the announcements made on 6 July and 27 July 2005, the Board of MKM
Group plc ("MKM", the "Group" or "the Company") is pleased to announce details
of the proposed placing and open offer.
On 6 July 2005, the Company announced that agreement had been reached with
Express Newspapers in respect of the Group's liability under a promotional
cruise offer. To raise the funds required to make the payments to Express
Newspapers under these arrangements and to provide additional working capital
for the Group, the Company proposes to raise up to approximately �1.23m (net of
expenses) by means of a placing and open offer.
The Placing
The Company proposes to raise approximately �1.18m (before expenses) by the
placing of 23,608,182 new ordinary shares of 0.5p each ("Ordinary Shares") at
5p per Ordinary Share. Irrevocable commitments have been received in respect of
the whole of this amount. Of this amount, Mark and Victor Koch are investing in
aggregate �350,000 in substitution for the loans made available to the Company
in June 2005.
A further �550,000 is being invested by Sound Financial Plc, a company of which
David Mond is a director and shareholder. David Mond will be appointed to the
Board as a non-executive director on admission of the new Ordinary Shares to
trading on AIM.
The Open Offer
The directors of MKM believe that qualifying shareholders should have the
opportunity to subscribe for additional Ordinary Shares, if they so wish, by
way of an open offer of 3,954,545 new Ordinary Shares at 5p per Ordinary Share
to raise up to approximately �200,000. Qualifying shareholders will be able to
apply for new Ordinary Shares pro-rata to their existing shareholdings on the
basis of 3 new Ordinary Shares for every 10 Ordinary Shares held on the record
date of Friday, 5 August 2005. Qualifying shareholders will be able to apply
for new Ordinary Shares in excess of their pro-rata entitlement. In the event
that the open offer is not fully taken up, any remaining shares will be made
available by way of an additional placing by W.H. Ireland Limited.
EGM
The proposals are conditional upon shareholders' approval at an Extraordinary
General Meeting of the Company to be held on 2 September 2005.
Timetable
Record date for the Open Offer 5 August 2005
Circular and application forms posted to 8 August 2005
shareholders
Ex-entitlement date 8 August 2005
Latest time and date for receipt of completed 3.00 pm on 30 August 2005
application forms and payment in full under the
Open Offer
Extraordinary General Meeting 11.00 am on 2 September 2005
Dealings in new Ordinary Shares expected to 5 September 2005
commence
Circular to shareholders
A circular setting our details of the Placing and Open Offer will be posted to
shareholders today.
Enquiries:
Mark Koch (Chief Executive) 0161 606 0733
David Youngman (WH Ireland Limited) 0161 832 2174
Andrew Tan (Hansard Communications) 020 7245 1100
END
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