8PG.L Regulatory News (8PG)

14 May 2018

Legendary Investments PLC("Legendary" or the "Company")

Placing and proposed Subscription raises approximately £550,000

Legendary is pleased to announce that it has raised an aggregate of £550,000 (before expenses) by way of a placing and subscription of 550,000,000 new ordinary shares of 0.1 pence each ("Ordinary Shares") at a price of 0.1 pence per New Share (the "Fundraising"). This includes 100,000,000 Ordinary Shares, which Zafar Karim, Executive Chairman of the Company, is expected to subscribe for on the same terms.

The Company will use the proceeds to fund seed investments, repay the debt and for general working capital purposes.

Legendary's existing portfolio of investee companies includes VirtualStock Holdings Ltd ("VirtualStock"), a leading, British Cloud based SaaS provider that is transforming enterprise supply chain marketplaces and procurement in the NHS. Legendary identified and invested in VirtualStock in October 2012 at a valuation of £2m. In July 2017, a VC invested in VirtualStock at a valuation £66m, over 30x the initial valuation at which Legendary invested. Since then, VirtualStock has continued to make significant progress. In addition, Legendary's portfolio includes IBS, a New Zealand based banking services platform. Legendary obtained its stake in IBS at establishment in August 2017 at a nominal value. Subsequently, investments were made in IBS at a valuation of US$10m. Recently, IBS has been granted the requisite permissions to establish its banking services platform with the ability to provide a range of financial services including investment banking, asset management and debt services to corporate and high net worth clients.

Zafar Karim, Executive Chairman of Legendary, said: 

"We are pleased with the fundraising which was oversubscribed. VirtualStock continues to make significant progress with new partners such as Wincanton. Since being granted authority to operate in New Zealand, the commercial opportunities available to IBS, which were scoped out during the last several months, can now be taken to fruition. These range in size from the US$10 - US$100s of millions.

"We are delighted to welcome our new shareholders to the register. Their funds will enable us to seed finance new opportunities with a view to achieving asymmetric returns. Currently, the most promising opportunities that Legendary is seeing are in the technology and content and media spaces.

"My confidence in the business is underlined by my intention to subscribe for a total of 100,000,000 shares in this Fundraising, taking my shareholding in the Company to just over 4%. We look forward to reporting on developments in due course."

Details of the Director Subscription and Related Party Transaction

Zafar Karim, Executive Chairman of the Company, intends, following this announcement, to subscribe for a total of 100,000,000 Ordinary Shares at a price of 0.1 pence per share ("Director Subscription"). Following this, he will have a beneficial interest in 155,727,273 ordinary shares, representing approximately 4.05 per cent. of the enlarged ordinary share capital of the Company. Mr Karim also holds 316,000,000 options with an exercise price of 0.2 pence per Ordinary Share

Zafar Karim is a related party to Legendary, as defined in the AIM Rules for Companies and the Director Subscription is a related party transaction for the purposes of Rule 13 of the AIM Rules ("Related Party Transaction").

Thomas Reuner, being the Independent Director for the purposes of the Related Party Transaction, considers, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, that the terms and conditions of the Director Subscription are fair and reasonable insofar as the shareholders of the Company are concerned.

Details of the Fundraising

Completion of the Fundraising is conditional, inter alia, upon admission of the New Ordinary Shares to trading on AIM ("Admission").

Application has been made for the 550,000,000 new Ordinary Shares to be issued under the Placing and proposed Director Subscription, which will rank pari passu with the existing Ordinary Shares in the Company, to be admitted to trading on AIM. It is expected that Admission will become effective and dealings will commence on or around 8:00a.m. on 17 May 2018.

Total Voting Rights

Following the issue of the new Ordinary Shares under the Placing and Director Subscription, the issued share capital of the Company will consist of 3,842,912,755 Ordinary Shares. No shares are held in treasury at the date of this announcement. The total current voting rights in the Company is therefore 3,842,912,755.

This figure of 3,842,912,755 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

- ENDS -

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

About Legendary Investments PLC

Legendary Investments PLC focuses on assisting companies and making investments in which exhibit the potential to generate returns of many multiples through capital appreciation. Typically, Legendary takes stakes in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth. Examples of such sectors include technology, energy and natural resources.

www.leginvest.com