9 Feb 2012 08:19
9 February 2012
Brainspark plc
("Brainspark" or "the Company")
Proposed Further Investment in Brainspark by CEO
Alfredo Villa, the CEO of Brainspark has asked the Board to consider his offer to convert all current monies owed to him into 1,004,375 new Brainspark ordinary shares at a price of 16 pence per share (the closing price at 3 February 2012), equal to £160,700 in lieu of salary and expenses. A break-down is as follows:
·; £125,000 in past due salaries between April 2011 and January 2012 (10 months)
·; £35,700 in travel and other expenses for the same period
In addition, Mr Villa has asked the Board to consider his offer to subscribe to a further 2,120,625 ordinary Brainspark shares at 16 pence per share (the closing price at 3 February 2012), thereby providing the Company with a further £339,300 in cash to clear all short term debts owed by the Company.
If the Board agrees to this proposal, Mr Villa will have personally injected £500,000 in return for 3,125,000 new Brainspark shares. An announcement from the Board is expected to follow in due course.
Related party Transaction
The placing and the issuing of new shares in lieu of salary and expenses to Alfredo Villa, if carried out, would be classified as a transaction with a related party for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the directors of the Company, with the exclusion of Alfredo Villa, having consulted with the Company's nominated adviser, Westhouse Securities Limited, consider that the terms of the proposed transaction are fair and reasonable insofar as the Company's shareholders are concerned.
-ends-
For further information please contact:
Brainspark plc +39 02 525 051
Alfredo Villa, Chairman and CEO
Westhouse Securities +44 (0) 20 7367 9072
Antonio Bossi
Leander PR +44 (0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark Plc
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.