Subscription for new A-Shares in subsidiary (5362E)
May 31 2012 - 8:51AM
UK Regulatory
TIDMTPS
RNS Number : 5362E
Turbo Power Systems Inc
31 May 2012
Subscription for new A-Shares in subsidiary
Turbo Power Systems Inc ("TPS", the "Company" or the "Group"), a
leading UK based designer and manufacturer of innovative power
solutions, is pleased to announce that two existing holders of
A-Shares in the Company's subsidiary, Turbo Power Systems Limited
("TPSL") ("A-Shares" and "A-Shareholders"), have conditionally
agreed to subscribe for an aggregate of 444,444,444 new A-Shares in
TPSL at a price of 0.45 pence per A-Share to raise GBP2 million of
new financing for the Group (the "Subscription").
As set out in recent announcements, the directors of the Company
(the "Directors") have extensively explored options for addressing
the Company's financial constraints and to secure further working
capital to support the Company's growth prospects. The Directors
believe that the Subscription, split equally between two existing
A-Shareholders, Argun Investments Limited and Island Investments
(Securities) Limited, being at a premium of over 80% to the
Company's closing share price on 30 May 2012, is the most
appropriate means of securing further financing at this time.
James Pessoa, Chairman, said: "We are delighted and encouraged
that existing A-Shareholders are signalling their continuing
support for TPS. The capital raised by this subscription will be
used to support the growth of the business, which we continue to
believe has strong prospects".
The Directors consider, having consulted with finnCap Ltd, the
Company's nominated adviser, that the terms of the Subscription
being entered into are fair and reasonable insofar as the Company's
shareholders are concerned.
Details of A-Shares
The A-Shares are a class of non-voting share capital in TPSL and
are exchangeable, upon no less than 61 days' written notice to the
Company from A-Shareholders, into common shares in the Company. The
A-Shares will not be listed on any stock exchange. In the event of
winding up of TPSL, holders of A-Shares have a preferential right
to receive an aggregate of GBP500,000 to be divided among the
holders of the A-Shares on a pro rata basis, and shall not be
entitled to any further distribution of the assets of TPSL. A
summary of further rights associated with the A-Shares are set out
in Schedule C of the Company's circular to Shareholders dated 20
October 2006 and available at the Company's website at
http://www.turbopowersystems.com/uploads/assets/investor-centre/special-meeting-oct-20.pdf.
Following the Subscription, there will be 892,777,778 A-Shares
in issue. Should all A-Shareholders give notice to exchange their
A-Shares into common shares of the Company, 892,777,778 new common
shares of the Company would be issued, representing 21.1% of the
enlarged issued share capital of the Company.
Enquiries:
Turbo Power Systems Inc Tel: +44 (0)20 8564 4460
Peter Brown, Chief Executive Officer
Kreab Gavin Anderson (financial public Tel: +44 (0)20 7074 1800
relations)
Robert Speed / Georgia Lewis
finnCap (NOMAD, broker and financial Tel: +44 (0)20 7220 0500
advisor)
Marc Young/ Henrik Persson
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCABMTTMBAJBMT
Turbo Power Systems (LSE:TPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Turbo Power Systems (LSE:TPS)
Historical Stock Chart
From Jul 2023 to Jul 2024