19 Jun 2009 07:00
19 June 2009
Crawshaw Group PLC ("Crawshaw" or the "Company")
Issue of Subscription Shares
The Board of Crawshaw today announces that ISIS Equity Partners LLP ("ISIS") is subscribing for 5,256,254 new ordinary shares (the "Subscription Shares") in the Company at 17 pence per share (the "Subscription"). The Subscription will raise approximately GBP894k (before expenses). The funds will be used, when appropriate, to support the Company's stated store rollout strategy.
Background to the Subscription
Crawshaw, the meat focussed retailer, opened its 20th store on 11 June, the 7th new store opening in less than 12 months. As announced on 9 March 2009, the financial returns of the new stores, which cover a variety of different locations and formats, are now being evaluated with a view to enabling the Board to maximise profitability from further new stores going forward. The Subscription means the Company is now well placed to resume the store opening strategy when appropriate market conditions re-emerge.
The Subscription
The Company has made arrangements to raise approximately GBP 894k gross (approximately GBP 891k net of expenses) by way of a subscription for new shares in the Company at a price of 17 pence per share. ISIS has agreed to subscribe for 5,256,254 new ordinary shares (comprising 9.1 per cent. of the enlarged issued share capital) at 17 pence per share which represents a 3 per cent. premium to the closing mid market price of 16.5 pence on 18 June 2009 (being the latest practicable date prior to the date of this announcement).
The Company has existing authorities in place to allow the issue of the Subscription Shares for cash on a non pre-emptive basis and the Subscription therefore does not require additional shareholder approvals.
On admission, the Subscription Shares will rank pari passu in all respects with the Company's existing ordinary shares.
Members of the public are not eligible to take part in the Subscription.
Application has been made for the admission of Subscription Shares to trading on AIM. It is expected that admission will occur and that dealings will commence on 22 June 2009, at which time it is also expected that the Subscription Shares will be enabled for settlement in CREST.
Immediately following admission of the Subscription Shares, the Company will have 57,818,801 ordinary shares in issue.
END
Enquiries:
| Crawshaw Group plc | |
| Richard Rose | 07836 250 474 |
| Investec Investment Banking | |
| Martin Smith / Duncan Williamson | 0207 597 5970 |