28 Nov 2008 18:15
For Immediate Release
28 November 2008
@UK PLCProposed authorities to issue shares and Notice of General Meeting ("GM")
BACKGROUND
The Directors believe that @UK PLC has a number of exciting developments in prospect, such as their OGC framework for spend analysis and potential contracts with London Procurement Program (the procurement body for the 73 London NHS Trusts) following a successful pilot of our spend analysis system.
The Directors should like to ensure that your Company has the resources to deliver these prospects whilst maintaining our financial position, which they believe provides the Company with an advantage over its direct competitors.
Therefore the Board is now seeking authority to raise additional funds without the high costs of going through a rights issue process, which might otherwise require the preparation of a prospectus. The Board believes that this is a prudent step to take, particularly given the current market conditions, as it will provide the Board with the flexibility to move quickly to raise funds if required on more favourable terms. At present the Company has cash resources of £ 670,444.
The Company is therefore seeking from shareholders the flexibility to raise finance by means of issuing new equity without pre-emption for existing shareholders.
In assessing the level of funds raised, and the terms on which such funds are raised, the Board will seek to negotiate the best commercial terms available to it taking account of the current state of the equity market, the Company's funding requirement and the willingness of investors to back the Company as an investment proposition. The amount of funds raised will be determined by the demand received for the Company's new equity (or instruments convertible into equity), the cost of such investment, and the Board's assessment of the benefit of the returns available from that investment versus the cost of the funding.
The Company is therefore seeking the authority to issue up to 50 million shares for cash without first offering such shares to existing Shareholders. Given that the Company presently has 37.8 million shares in issue it is likely that any issue of Ordinary Shares in the Company will be highly dilutive to existing shareholders.
The Company is also seeking shareholder consent to electronic communications. This fits with the Company's ethos as an electronic business company and will help reduce costs and improve the environment.
GENERAL MEETING
The Company is today sending shareholders a circular convening a General meeting to be held at 6a Vulcan House, Calleva Park, Aldermaston, Berks RG7 8NN at 10.00 am on 24 December 2008 at which Resolutions will be proposed to:
A copy of the circular and this announcement will be available on the Company's website:
www.uk-plc.net/
Contacts
@UK PLC
Ronald Duncan
Chairman
Tel 0118 963 7000
Beaumont Cornish LimitedRoland Cornish
Tel 0207 628 3396