28 May 2009 07:00
LEGENDARY INVESTMENTS PLC
ISSUE OF EQUITY AND RESTORATION OF TRADING
Issue of Equity
As there can be no certainty as to the timing of recovery, or amount recoverable, of the Company's funds with Echelon Wealth Management Limited ("Echelon"), which is further detailed below, the Company has undertaken a fundraising to assure its trading future. It today announces that it has agreed to raise, conditional only upon admission of the new ordinary shares to trading on AIM, £135,000 through the issue of 67,500,000 new ordinary shares at a price of 0.2 pence each. The new ordinary shares will, once issued, represent approximately 9.70 per cent. of the enlarged issued share capital. Application has been made to AIM for the admission of the 67,500,000 new ordinary shares and dealings are expected to commence on 28 May 2009.
Update re: Echelon Wealth Management
Further to the announcement of 28 November 2008, the board of Legendary Investments plc (the "Company") has, to date, received no substantive update on the situation regarding the administration of Echelon, where the Company had a trading account with Echelon which acted as broker for the majority of the Company's trades. As previously announced, the trading account contained a substantial positive balance of approximately £613,000 representing the bulk of the Company's cash reserves. On the basis of information provided thus far to the company by Echelon's administrators, Smith & Williamson, and after discussions with advisers, the Company has provided £250,000 for non-recovery of the assets held at Echelon. The Company awaits further news from Smith & Williamson.
Directors' Dealing
As part of the fund raising, Gavin Preston, Chairman and CEO, has subscribed for 6,250,000 shares. This will represent his entire beneficial interest in the ordinary shares of the Company and represents 0.90 per cent. of the enlarged share capital.
It was resolved by the Board of the Company that Gavin Preston be granted options to subscribe for 150,000,000 ordinary shares in the Company at an exercise price of 0.4 pence per share. The options are exercisable at any time while he remains an employee of the Company. Mr Preston's options, if exercised in full, represent approximately 17.75 per cent. of the so enlarged share capital.
It was also resolved by the Board of the Company that Zafar Karim be granted options to subscribe for 25,000,000 ordinary shares in the Company at an exercise price of 0.4 pence per share. The options are exercisable at any time while he remains an employee of the Company. In addition, the exercise price of his existing options to subscribe for 75,000,000 ordinary shares at an exercise price of 0.8 pence per share were resolved to be revised to 0.4p per share. Mr Karim's options, if exercised in full, represent approximately 12.57 per cent. of the Company's so enlarged share capital.
Following his resignation from the Board of the Company, Eaitisham Ahmed's options to subscribe for 125,000,000 ordinary shares at a price of 2.0p per share have been cancelled.
Total Voting Rights
Following the admission of the new ordinary shares to trading on AIM announced above, and in conformity with the Financial Services Authority's Disclosure and Transparency Rules, the Company gives notice that its voting capital will consist of:
| Ordinary Shares | Nominal Value | £ | Ordinary Shares held in Treasury |
| 695,167,198 | 0.1 pence | 695,167.20 | - |
As the Company does not hold any ordinary shares in Treasury its total number of voting rights equals its capital.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FSA's Disclosure and Transparency Rules.
Change of Website
The Company's new website address, with immediate effect, is www.legendaryinvestments.net; the old website of www.legendaryinvestments.co.uk should no longer be used.
Investing Strategy
The Company's investing strategy will continue to be to invest in minority stakes in a spread of e-commerce, internet and technology-focused businesses which fit within the Company's investment criteria, which include experience of investee company management, size and potential growth of market in which investee company operates, investee company's position within its market, investee company's intellectual property rights, and liquidity of investment.
Request to Restore Trading
The £135,000 raised represents more than 12 months of current overheads for the Company and therefore gives it sufficient working capital for its immediate needs. On that basis, the Company has today requested that AIM restore trading in its shares with immediate effect. The Company will continue to update the market of any developments relating to Echelon.
Contact:
| Legendary Investments plc | Gavin Preston, Chairman and Chief Executive Zafar Karim, Director | +44 (0) 20 7887 1335 |
| Dowgate Capital Advisers Limited | James Caithie | +44 (0) 20 7492 4777 |