Last checked at 10 Jul 2009 07:00
10 July 2009
CINPART PLC
('Cinpart' or the 'Company')
Issue of Equity and Appointment of Joint Broker
Placing
Cinpart, the AIM-quoted electrical products manufacturer and supplier, is pleased to announce that it has raised £775,000 before expenses from a placing of 7,750,000 ordinary shares (the "Placing Shares") at 10 pence per share in the capital of the Company (the "Placing").
The net proceeds of the Placing, amounting to approximately £730,000, will be used to strengthen the Company's balance sheet and to advance, through the appointment of additional sales personnel including a sales manager, the roll out of VoltageMaster, the voltage optimisation product supplied through its subsidiary Active Energy Limited ("Active Energy").
This further funding, which was largely provided by a UK institutional investor and clients of a private client stockbroker, will assist the Company in processing the increasing level of sales leads that have been generated to date with a view to securing additional sales at the earliest opportunity to supplement the £1.18 million contract announced on 15 June 2009.
In addition, the directors of Cinpart (the "Directors"), have subscribed, in aggregate, £65,000, in the Placing for 650,000 new ordinary shares, equivalent to 0.85 per cent. of the enlarged issued share capital following the Placing.
Furthermore, Stephen Coomes and Anthony Freudmann, both directors of Active Energy, have also participated in the Placing; subscribing £45,000 for 450,000 new ordinary shares, representing 0.59 per cent. of the enlarged issued share capital following the Placing.
Following the Placing, the Directors' shareholdings will be as follows;
| Ordinary Shares currently held | Placing Shares being subscribed for | Ordinary Shares held following the Placing | Percentage of Enlarged Issued Share Capital Held | |
| Philip Palmer (Non-executive Chairman)* | 3,081,808 | 400,000 | 3,481,808 | 4.57% |
| Kevin Baker (Chief Executive Officer) | 663,146 | 100,000 | 763,146 | 1.00% |
| Christopher Foster (Executive Director) | 5,375,071 | 150,000 | 5,525,071 | 7.26% |
*A percentage of Philip Palmer's existing beneficial interest is held by Consortia Trustees Limited, trustees of his family trust. 200,000 of the Placing Shares are being subscribed for by Consortia Trustees Limited.
The Placing is conditional upon admission of the Placing Shares to trading on AIM. Admission is expected to become effective and dealings are expected to commence on 15 July 2009.
Following the Placing the Company will have 76,167,133 Ordinary Shares in issue.
Appointment of Joint Broker
The Company also announces it has appointed Mirabaud Securities LLP as its joint broker, with immediate effect.
The Company has issued warrants over 232,500 Ordinary Shares to Mirabaud Securities LLP as part of its fees in connection with the Placing. The warrants are exercisable at 10 pence per share and are capable of exercise until 9 July 2011.
Kevin Baker, Chief Executive Officer of the Company, commented;
"We are very pleased to have raised £730,000, net of expenses, and by the strong support demonstrated by our investors, both existing and new, particularly considering the challenging economic environment. Since the formation of our subsidiary, Active Energy, sales leads and enquiries regarding our range of voltage optimisation equipment, the VoltageMaster, have increased rapidly. The funds raised will greatly assist in bolstering our sales team as we seek to convert our ever-growing leads into contracts as well as to further develop the business to meet demand."
-ENDS-
Enquiries:
| Cinpart Plc | |
| Kevin Baker, Chief Executive Christopher Foster, Executive Director | Tel: 020 3176 3033 Tel: 020 3176 3031 |
| John East & Partners Limited, a subsidiary of Merchant Securities Plc (Nominated Adviser) | |
| John East/Simon Clements | Tel: 020 7628 2200 |
| Rivington Street Corporate Finance Limited (Joint Broker) | |
| Monisha Varadan | Tel: 020 7562 3389 |
| Mirabaud Securities LLP (Joint Broker) | |
| Rory Scott | Tel: 020 7878 3360 |
| Hansard Group (Public Relations) | |
| Vikki Krause | Tel: 020 7245 1100 |
About Cinpart:
Cinpart plc (AIM:CINP) is a designer, manufacturer and supplier of electrical components. The Group owns a manufacturing facility in Thailand and operates through its wholly owned subsidiaries Gasignition Limited; a supplier of electrical components to small and medium-sized European gas appliance manufacturers, Derlite Co Limited; an international manufacturer of electrical and non-electrical components, and Active Energy Limited, the 65 per cent. owned manufacturer and supplier of the VoltageMaster, a device that can reduce electricity consumption in commercial buildings by up to 20 per cent.