7th jan RNS 15 Apr 2014 20:03
Whilst the Board will continue to be supportive of VEC and retain its interest in VEC for the foreseeable future, the Directors and Proposed Directors believe an expansion of the Company's investing policy will provide the opportunity to deliver enhanced returns for Shareholders. To that end, the Directors and Proposed Directors propose to expand the Investing Policy as follows:
? The Company will consider acquiring one or more companies, or subsidiaries of companies, focussed in the facilities management and or support services sectors. The Directors and Proposed Directors believe that the Facilities Management and Support Services sectors offer attractive opportunities to build a profitable group going forward. Acquisition targets will be either UK based or with a sizeable UK presence, which offer the ability to grow both organically and potentially through further acquisitions.
? Any such acquisition or acquisitions are likely to be acquired through a combination of equity issued to vendors and cash, but may include other forms of finance such as debt. Depending on the size of any acquisition, it is likely that the first such acquisition under the Investing Policy will be deemed to be a reverse takeover for the purpose of the AIM Rules, which would require shareholder approval and re-admission of the Company, as enlarged by the acquisition, to trading on AIM.
?The Company intends to be an active investor and will seek to add substantial value, both operationally and strategically, to the businesses and/or assets acquired or in which investments are made. The Company does not currently anticipate making minority investments but intends to focus on owning the whole of or a majority interest in one or more companies or assets.
The Directors and Proposed Directors are mindful that any such acquisition identified may require additional funding to both acquire the business and provide working capital for the enlarged Company and therefore further equity fundraisings may be undertaken by the Company in the future.
The Directors and Proposed Directors expect to make one or more acquisitions and/or undertake a reverse takeover transaction within 12 months of Admission. Although the Directors and Proposed Directors are already appraising and evaluating potential companies for acquisition or investment, no agreements have as yet been entered into and there is no guarantee that any such agreements will be entered into.
Cash held by the Company pending any acquisition will be managed by the Company and placed in bank deposits or in capital guaranteed schemes offered by major global financial institutions, in order to protect the capital value of the Company's cash assets. The Company may, where appropriate, also enter into agreements or contracts in order to hedge against interest rate or currency risks.
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