Herald Invests in Artilium....17 Jun 2011 09:20
RNS Number : 6090I
Artilium PLC
17 June 2011

Artilium plc
('Artilium' or the 'Company')
Artilium raises £1.26m in Placing and converts all outstanding loan notes with a value of
Euro 3,295,000 into ordinary shares at placing price
Highlights:
· Raised £1.26m at 8.5p via Placing of 15,206,739 ordinary shares, with Herald Investments, existing shareholders, management and Directors
· Euro 3,295,000 loan notes converted to equity, Company now debt free
Maarten Bisseling, CEO Artilium commented: "We are very pleased to have completed this Placing and to have secured Herald Investments as a significant shareholder. I am also pleased that the holders of the Notes have all decided to become equity holders in the Company which demonstrates their faith in the future of the business. This follows the agreement last month with our largest client, KPN Group Belgium, to extend their contract and switch to a subscriber based fee model. We look forward to the future now with no debt, the financial base to meet our objectives and a secure client base from which to build."
Artilium is pleased to announce that it has completed a placing of 15,206,739 new ordinary shares of 5p each (the "Placing Shares") at a price of 8.5p per Placing Share (the "Placing Price"), raising approximately £1.26m for the Company before expenses associated with the Placing. 7,058,824 Placing Shares have been subscribed for by Herald Investments, a new shareholder in the Company, resulting in an interest of 4.87% in the Company's enlarged share capital. A further 6,153,844 Placing Shares were taken up by existing shareholders, with Directors and employees taking a total of 1,647,739 Placing Shares. A further 364,292 new ordinary shares have been issued at the Placing Price as commission in connection with the Placing in lieu of cash fees.
The proceeds from the issue of shares will be used (i) to further grow the company internationally, (ii) to invest in marketing and sales and international distribution channels, and (iii) for working capital purposes.
The Company has also agreed with the holders of its Euro 3,295,000 10% coupon secured loan notes (the "Notes") that all of the Notes be immediately converted into new ordinary shares at a price of 8.5p per share and all interest outstanding on the Notes also be satisfied by the issue of shares at the same price. A total of 37,596,725 new ordinary shares have accordingly been issued in connection with the conversion of the notes and accrued interest payments, leaving the Company with no outstanding debt.
Application has been made to the London Stock Exchange for a total of 52,803,464 new ordinary shares to be admitted to trading on AIM. Dealings are expected to commence in the new ordinary shares on 23 June 2011 ("Admission").
As a result of the Placing the following Directors have the
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