Blue Star Regulatory News (BLU)

12 Sep 2006 07:00

Blue Star Capital plc12 September 2006 12 September 2006 BLUE STAR CAPITAL PLC ("Blue Star" or "the Company") Investment of £150,000 through a convertible loan in Izimi Blue Star Capital plc (AIM: BLU), the Company created to provide seed capitalfor early stage companies, is pleased to announce an investment in Izimi Limited("Izimi"), the innovative web-based software company that is currentlydeveloping a peer to peer (P2P) social networking computer application. Izimi is being led by an exceptional management team that has substantialexperience in the management of technology-based start-ups and their growth intolarge companies. The team includes Nigel Robertson and Chris Chedgzoy foundersof ScootTM, the online classified directory, which grew into an internationalbusiness with a London Stock Exchange listing. ScootTM was ultimately acquiredby British Telecom. Izimi's applications are currently in a beta-testing phase, with an expectedlaunch in early 2007. As such, the company is not yet revenue generating. Sinceits incorporation on 14 September 2005 Izimi has incurred development losses of£266,460. As at 30 July 2006 the company had net assets of £101,534. Blue Star has made an investment of £150k, as part of a total investment of£575k through a convertible loan which carries an annual interest rate of 7% andwhich can be converted into ordinary shares of the Company at any time up to 31December 2007. Under the terms of the conversion the loans are, in aggregate, convertible intosuch number of ordinary shares in Izimi as represent 13% of the enlargedordinary share capital of Izimi at the time of conversion. Nigel Robertson, Blue Star's Chairman, is a shareholder and director of Izimi.The proposed investment by Blue Star in Izimi is, accordingly, deemed to be arelated party transaction under the AIM Rules. Haresh Kanabar, has no connections with Izimi and is therefore independent ofthe transaction. Mr Kanabar considers, having consulted with Teather & GreenwoodLimited, that the terms of the transactions are fair and reasonable insofar asBlue Star's shareholders are concerned. Haresh Kanabar commented "Our proposed investment in Izimi, with its plannedblend of revenue generating channels including display advertising andcommission on transactions, is a great fit with Blue Star's strategic intent,of investing in early-stage companies that have significant potential capitalgrowth. Our investment in Izimi's proprietary technology will, I believe,generate attractive returns." - ends - For further information Blue Star Capital plcHaresh Kanabar Chief Executive Tel: 020 7297 0010 Teather & GreenwoodMark Dickenson Tel: 020 7426 9000 Holborn Public Relations LimitedDavid Bick Tel: 020 7929 5599 Notes: Izimi is a peer to peer (P2P) social networking computer application with usergenerated content, integrated instant messaging and Voice over Internet Protocol(VoIP) telephony. People will use it to find and socialise with friends orcustomers, and to buy, sell or exchange digital media content or professionalservices. Izimi is both an entertainment medium and, a means to earn money inreturn for digital content and services. Nigel Robertson is a Director of Izimi and also a substantial shareholderholding 40.5% of the equity. Nigel Robertson is also a Director of Blue StarCapital and holds 32.2% of the equity. This information is provided by RNS The company news service from the London Stock Exchange