acquisitions and placings29 Nov 2013 14:15
• Mar City has entered into conditional contracts to acquire eight plots of land in the Midlands for an aggregate consideration of approximately £30.8 million.
• Over 500 housing units in total with planning permission granted on all sites and four of the sites are already under development.
• The aggregate consideration is to be satisfied as to £25.8 million by the issue of 322,418,763
New Ordinary Shares credited as fully paid at the Placing Price and £5 million in cash.
• Mar City is also pleased to announce that WH Ireland Limited and Shore Capital Stockbrokers Limited, as joint bookrunners, have raised approximately £35 million (gross of expenses) through an oversubscribed placing of 437,500,000 New Ordinary Shares in the capital of the Company at a price of 8 pence per share ("the Placing").
• Use of net Proceeds from the Placing:
• £5 million of proceeds of the Placing will be used to settle the Cash Consideration due under the terms of the Acquisition Agreement and Property Acquisition Agreement; and
• the balance, approximately £28 million will be used to fund further land purchases and to provide general working capital to the Group.
• Proposed 1 for 10 share consolidation.
• General meeting to approve the necessary resolutions to implement the proposals has been convened to be held on 16 Decem ber 2013.