rns12 Apr 2010 11:37
Eatonfield Group plc
12 April 2010
Eatonfield Group plc
("Eatonfield", "the Group" or "the Company")
Issue of Equity and Equity Drawdown Facility
The board of Eatonfield announces that on 9 April 2010, the Company drew down £250,000 against its previously notified equity drawdown facility ("the Facility") with Jenard Properties Limited ("Jenard"), to be satisfied by the issue of 25,000,000 new ordinary shares of 1 penny each ("Ordinary Shares") at a price of 1 penny per Ordinary Share. The £250,000 drawn down under the Facility will be used to fund potential acquisitions as part of the board's plans to provide a degree of stability to the Group's financial position.
On 9 April 2010, Jenard also agreed to make a further £250,000 ("the Additional Funding") available to the Company under the Facility. The Additional Funding is subject to the same warranties, terms and conditions as the sums initially made available under the Facility. All sums drawn down under the Facility will continue to be satisfied by the issue of Ordinary Shares in Eatonfield at a price of 1 penny per share.
Following the arrangements described above, £900,000 remains available under the Facility for Eatonfield to draw down at any time until 31 August 2010. The directors anticipate that the remaining funds available, if drawn down in total, will provide Eatonfield with sufficient working capital through to 31 August 2010. The directors continue to pursue other options to raise further equity and therefore increase the level of working capital funding available to the Group, although, as previously notified, the directors believe that the provision of such funding will largely depend on the arrangement of a "standstill agreement" with all of Eatonfield's banks.
Application has been made for the admission of the 25,000,000 new Ordinary Shares to trading on AIM. It is expected that admission will become effective and that dealings will commence in the new Ordinary Shares on 16 April 2010. On admission of the new Ordinary Shares, the Company will have 267,234,775 Ordinary Shares in issue and Jenard's notifiable interest will be in 35,000,000 Ordinary Shares, representing 13.10% of the Company's issued share capital.
For further information please contact:
Eatonfield Group plc
Tel: +44 (0)1829 261 910
Paul Williams (Executive Chairman)
Rob Lloyd (Group Chief Executive)
Evolution Securities Limited
Tel: +44 (0)113 243 1619
Joanne Lake/Peter Steel
Orbis Equity Partners Limited
Tel: +44 (0)203 137 1904
Jeremy King
Threadneedle Communications
Tel: +44 (0)207 653 9850
Graham Herrings/John Coles