Last checked at 22 Sep 2010 07:00
22 September 2010
Pinnacle Telecom Group plc
(the "Company")
Placing to raise £450,000
Director Shareholdings
Pinnacle Telecom Group plc, (AIM: PINN) the AIM listed provider of integrated telecommunications solutions, is pleased to announce that it has successfully raised £450,000, before expenses, by way of a placing of 128,571,429 new ordinary shares of 0.1p each in the capital of the Company ("new Ordinary Shares") at 0.35p ("Placing Price") per new Ordinary Share (the "Placing"). The Placing was undertaken with three new investors, including two institutions, certain Directors of the Company and its subsidiary companies.
Highlights
·; The Placing was completed at 0.35 pence per share
·; The gross proceeds of the Placing total £450,000
·; The Placing Price represents a premium of approximately 18.64% over the mid-market closing price of 0.295p on 21 September 2010
·; The proceeds will be used for general working capital purposes, and to strengthen the Company's balance sheet
The new Ordinary Shares will rank pari passu with other ordinary shares and application has been made for the new Ordinary Shares to be admitted to trading on AIM, which is expected to be on 28 September 2010.
Following this issue, the Company has been informed of changes to the shareholdings of the directors, all of whom participated in the issue, as follows:
| Director Name | Number of new Ordinary Shares acquired | Aggregate interests following completion of the Placing | Following the Placing, Percentage of the enlarged Share Capital |
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| Alan J Bonner | 12,285,714 | 187,076,971 | 10.02% |
| Bill Allan | 5,714,286 | 5,714,286 | 0.31% |
| John C Anderson | 1,428,571 | 1,428,571 | 0.08% |
The Company has also been advised that Darron Giddens, a director of a subsidiary company, has acquired 12,000,000 new Ordinary Shares, increasing his holding to 190,273,709 ordinary shares, representing 10.19% of the Company's enlarged share capital.
The Company has also been advised that Garry Nelson, a director of a subsidiary company, has acquired 14,285,714 new Ordinary shares, representing 0.77% of the Company's enlarged share capital.
The Company is also delighted to announce that Tom Black, the former CEO of Detica PLC, a major provider of security, intelligence and analysis solutions, and current Executive Chairman of AIM listed Digital Barriers plc, has subscribed personally for 57,142,857 shares in the Placing, representing 3.06% of the enlarged share capital of the Company.
Following the Placing, the issued share capital of the Company will increase by 7.39% to 1,867,429,059 ordinary shares. This 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 share capital of the Company under the Disclosure and Transparency Rules.
The Directors' participation in the Placing is a related party transaction under the AIM Rules. Since there are no Directors who are independent of the transaction, Zeus Capital, the Company's nominated adviser, has advised the Company that it considers that the terms of the transaction are fair and reasonable insofar as the Company's Shareholders are concerned.
Commenting on the Placing, Alan Bonner, CEO of Pinnacle, said: " 'I am delighted with the success of our equity fund raising. This is the first time in over three years that the Company has raised equity capital and I am pleased to welcome two new institutional shareholders and Tom Black as investors and I thank them for their support. I would also like to thank the group's Directors for their investment and continual support.
The Placing Price represents a premium of approximately 18.64% over the mid-market closing price of 0.295p on 21 September 2010, and as the Company continues to build its business through both acquisition and organic growth, the funds raised will be applied to provide further working capital as the group continues to expand its activities and develop new customer solutions, particularly in the area of Internet Protocol (IP) technologies."
| For further information please contact: |
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| Pinnacle Telecom Group plc |
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| Alan J Bonner, Chief Executive | 0845 119 2100 |
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| Zeus Capital Limited |
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| Ross Andrews | 0161 831 1512 |
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| Rivington Street Corporate Finance Limited |
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| Jon Levinson & Peter Greensmith | 0207 562 3389 |
All Company announcements & news can be found at: http://www.pinnacletelecomgroup.co.uk
About Pinnacle
Pinnacle Telecom Group plc (AIM: PINN) is a value added, solutions based provider of integrated telecommunications services including IP solutions. It focuses on the SME market across the UK, where it provides a wide range of communications solutions including telecommunications calls, access and consultancy, IT support, mobile solutions - both voice and data and hosted broadband voice services.
Pinnacle is a fully licensed Public Telephone Operator, has its own telephone network and interconnects with BT, Virgin Media and THUS. It has its own hosted voice (VoIP) platforms and engineers and owns Scotland's oldest ISP (and a founder member of Nominet), operating from its data centres in Glasgow, London and Brighton.
Pinnacle's strategy is to be a SME focused, value added, solutions based provider of converged communications services, driven by leveraging organic opportunities as well as through targeted acquisitions.