WGT Wallgate

RNS Number:5834A
Wigmore Group (The) PLC
07 July 2004



                             The Wigmore Group plc
                                  ("Company")

                             New Financing Proposals

In the Company's circular dated 5 June 2004, the Company announced the details
of refinancing proposals that had been agreed with Square Mile Limited ("Square
Mile") and Evolution Beeson Gregory Limited ("EVBG"). On 29 June 2004
resolutions relating to these proposals were approved by shareholders at an
Extraordinary General Meeting of the Company.

Following publication of the circular, the Company opened discussions with
Burnbrae Limited ("Burnbrae") concerning alternative financing proposals and
today the Company announces that it has entered into an investment agreement
with Burnbrae which the Directors consider provides a better option for the
Company and shareholders than the agreement with Square Mile.

EVBG has completed its #700,000 investment in the Company as described in the
circular and Wigmore has today entered into a termination agreement with Square
Mile whereby in consideration for, inter alia, the grant of certain warrants and
the issue of certain shares, Square Mile agreed to terminate its investment
agreement with the Company.


The termination agreement with Square Mile

In consideration for entering into the termination agreement, Square Mile will
be granted 200 million warrants to subscribe for ordinary shares at 0.01 pence
per share and a further 100 million warrants to subscribe at 0.11 pence per
share. In addition, Square Mile will have the right to subscribe for 45 million
ordinary shares at 0.10 pence per share.

The new financing proposals

Under the terms of the new subscription agreement, the Company will immediately
issue to Burnbrae a convertible loan note to the value of #300,000, convertible
at 0.11p. The convertible loan bears interest at a fixed rate of 4 per cent. per
annum and is convertible, at the option of the holder, into new Ordinary Shares
at a conversion rate of 909 new ordinary shares for every #1 of Convertible
Loans, equivalent to an issue price of 0.11 pence per new ordinary share. The
convertible loans are redeemable, subject to certain conditions having been met,
at any time in between the period from 6 July 2006 to 30 June 2007.

Burnbrae has agreed to subscribe for a further #400,000 of ordinary shares at
0.11p per share of which 50% will be subscribed on 1 October 2004 and the
remainder on 20 December 2004. In addition Burnbrae has agreed to underwrite a
proposed further issue of shares of up to #700,000. In consideration of this,
the Company will grant, subject to shareholder approval warrants to subscribe
for ordinary shares amounting to a maximum of 132 million shares exercisable at
0.11p per share and a further 292 million warrants exercisable at 0.12p per
share.

Information on Burnbrae

Burnbrae Limited is a private investment company based on the Isle of Man.
Burnbrae, which is beneficially owned by Jim Mellon, manages an extensive and
diverse portfolio of property and equity investments, including an expanding
chain of hotels operated by its subsidiary Sleepwell Hotels Limited. It is
anticipated that Speymill, the Group's Leisure and Hotel Division will be
invited to tender for future work.

Application will be made in due course for the Admission of any new ordinary
shares allotted pursuant to conversion of convertible loan notes or exercise of
warrants. Any such new Ordinary Shares admitted to AIM will rank pari passu with
the existing Ordinary Shares.



Enquiries:

Peter Hewitt, Chairman and CEO
Tel: 01293 446699

Jeremy Porter, Seymour Pierce
Tel: 020 7107 8000



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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