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20 Jun 2008 07:30
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20Β June 2008
Cyprotex PLC
("Cyprotex" or "the Company" or "the Group")
Proposed Placing (theΒ "Placing"):Β New Ordinary SharesΒ to raise Β£1 million before expenses by the issue of 40,000,000 new Ordinary SharesΒ at a price of 2.5p per shareΒ and general meetingΒ ("EGM").
Highlights:
Placing of 40 million New Ordinary Shares at a price of 2.5p per share to raise Β£1 million.
Shareholders on record on 11thΒ July 2008 have the opportunity to take up to a pro rata allocation of the New Ordinary Shares.
First half of 2008 expected to be slightly ahead of Director's expectations.
Placing subject to aΒ generalΒ meeting on Monday, 14thΒ July.Β
The Board of Directors of CyprotexΒ PLCΒ (AIM: CRX), the drug discovery technology and information company, today announces its intention to place 40,000,000 new ordinary shares of 0.1p (the "NewΒ OrdinaryΒ Shares") at a priceΒ of 2.5pΒ per share, to raise Β£1,000,000 before expenses. The NewΒ OrdinaryΒ SharesΒ issued pursuant to the Placing willΒ represent 22.39% of the enlarged share capital of the Company,Β dealingsΒ inΒ which areΒ expected to commence onΒ 1stΒ SeptemberΒ 2008.Β TheΒ Placing will be carried outΒ subject to the disapplication of pre-emptive rights at aΒ GeneralΒ Meeting. The New Ordinary Shares will rank pari passu in full for dividendsΒ and other distributions declared, paid or made as from the allotment date.
The Board has received irrevocable undertakings from the Placees to subscribe for all of the New Ordinary Shares on the terms referred to above but subject to clawback by shareholders on record at close of business on 11thΒ July 2008 who will also have the right to take up a pro rata allocation of New Ordinary Shares. On this basis, the Placees will then fully subscribe any shares not taken up by eligible shareholders by the closing date.
AΒ circular relating to the Placing,Β together withΒ an application form for the Placing and associated proxyΒ form,Β will be posted to all shareholdersΒ today,Β 20thΒ June 2008. ItΒ setsΒ out details ofΒ theΒ EGMΒ together withΒ the reasons for the Placing,Β whichΒ itselfΒ remains conditional, inter alia, onΒ approval of certain resolutions to be proposed at the EGM andΒ admission of the New Ordinary Shares to trading onΒ AIM. TheΒ EGM, for which notice is set out in the Letter from the Chairman,Β will commence immediately following theΒ closing ofΒ theΒ Company'sΒ plannedΒ annual general meeting. CyprotexΒ PLC's annual general meetingΒ isΒ scheduled to commence at 10:00hrs onΒ Monday, 14thΒ July 2008 atΒ theΒ National Liberal Club,Β 1 Whitehall Place,Β LondonΒ SW1A 2HE.
A letter from the Chairman contained within the circular,Β states that Cyprotex enjoyed revenue growthΒ slightlyΒ ahead of management forecasts in the first half of 2008. ItΒ isΒ also notedΒ that this, combined with improved confidence from major shareholders in the Company following the appointment of Dr.Β Anthony BaxterΒ as Chief Executive Officer led to certain investorsΒ (the Placees)Β agreeing to subscribe the New Ordinary Shares as set out inΒ the Chairman'sΒ letter. The Placees comprise a combination of existing shareholders, management and one new investor. The investmentΒ made by the PlaceesΒ will be used to strengthen the commercial sales infrastructure with a view to increasingΒ revenue fromΒ theΒ existing high quality customer base and securing new prospects, investment in laboratory quality, efficiency and capacity. The intention is to provide sufficient confidenceΒ forΒ mid-scale pharmaceutical companies to consider committing to longer-term and significant outsourcing of theirΒ ADMET-screeningΒ (Absorption, Distribution, Metabolism, Excretion and Toxicity)Β requirements.Β
Following the issue of New Ordinary Shares, the enlarged share capital of the Company will comprise 178,647,988 ordinary shares of 0.1p each.
All documents and shareholder circulars mentioned on this announcement are available on the Company's website, www.cyprotex.com.
DrΒ Anthony Baxter, Chief Executive Officer, said:
"I would like to thank all investors, new and existing,Β who are supporting Cyprotex with this placing. This funding will provide the Company with the resources to move forward to itsΒ next phase of growth."
ENDS
For further information:CyprotexΒ PLC DrΒ Anthony Baxter, CEO Tel: +44 (0)1625 505 100ir@cyprotex.comwww.cyprotex.comΒ
Russell Gibbs, CFO Tel: +44 (0)1625 505 100ir@cyprotex.comwww.cyprotex.com
Nomura Code Securities Limited:Charles Walker, Corporate Finance Tel: +44 (0)20 7776 1200cew@nomuracode.comwww.nomuracode.comΒ
Media Enquires:Pelham PRSimon Miller Tel: +44 (0)20Β 3178 4419simon.miller@pelhampr.com
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