PROACTIS Holdings PLC Placing to raise £2.2 million (5104C)

TIDMPHD

RNS Number : 5104C

PROACTIS Holdings PLC

18 March 2014

PROACTIS Holdings PLC

("PROACTIS", "the Company" or "the Group")

Placing to raise GBP2.2 million

PROACTIS Holdings PLC, a global Spend Control and eProcurement solution provider, is pleased to announce that it has raised GBP2.2 million, before expenses, through the issue of 4,400,000 new ordinary shares of 10 pence each ("Ordinary Shares") with new and existing investors (the "Placing") at a price of 50 pence per new Ordinary Share.

Following the acquisition of EGS Group Limited in February 2014, PROACTIS stated, within its Interim Results announcement on 3 March 2014, that it is committed to M&A as a core element of its growth strategy. This Placing has been completed to support further acquisition opportunities and for general working capital purposes. The Group is currently evaluating a number of target companies although no terms have been agreed and there can be no certainty of a transaction at this time.

Details of the Placing

The Placing Shares will be issued pursuant to the authority granted to the Directors to allot shares free from statutory pre-emption rights at the Company's Annual General Meeting on 16 December 2013. The Company presently intends to convene a general meeting in the near future in order to renew such authorities.

Application has been made for 4,400,000 new Ordinary Shares, which will rank pari passu in all respects with the existing Ordinary Shares of the Company, to be admitted to trading on AIM ("Admission"). Admission is expected to be effective from 8.00 a.m. on 21 March 2014.

The Placing is conditional, inter alia, upon Admission of the Placing Shares becoming effective and the placing agreement entered into between the Company and finnCap becoming unconditional in all respects by no later than 8:00 a.m. on 21 March 2014 or such later date, being not later than 8:00 a.m. on 11 April 2014, in either case unless as the Company and finnCap otherwise agree.

Total Voting Rights

Subsequent to the issue of the Placing Shares, the total issued share capital of the Company will be 36,271,373 Ordinary Shares, with each share carrying the right to one vote. The Company holds 63,777 Ordinary Shares in treasury. Accordingly, following Admission, the total number of voting rights in the Company will be 36,207,596.

Rod Jones, Chief Executive Officer, commented:

"We are delighted to have completed this placing and we were encouraged by the demand for the Group's stock in the market from new and existing institutions. The additional capital will enable the Group to move forward decisively with the M&A element of its growth strategy and we look forward to deploying this capital efficiently."

Enquiries:

 
 PROACTIS Holdings PLC 
 Rod Jones, Chief Executive     Via Redleaf Polhill 
  Officer 
  Tim Sykes, Chief Financial 
  Officer 
 Redleaf Polhill 
 Rebecca Sanders-Hewett 
  Jenny Bahr                          0207 382 4730 
 
 finnCap Limited 
  Stuart Andrews 
  Charlotte Stranner                  0207 220 0500

Notes to Editors:

PROACTIS creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. PROACTIS is used in over 300 organisations around the world from the commercial, public and not-for-profit sectors.

PROACTIS is head quartered in Wetherby, West Yorkshire. It develops its own software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners.

PROACTIS floated on the AIM market of the London Stock Exchange in June 2006.

CLOUD COMPUTING is defined as location-independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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