17 Nov 2014 13:40
Castleton Technology Plc
("Castleton" or "the Company")
Result of General Meeting
Completion of Acquisition of Documotive
Castleton, the specialist provider of IT solutions to the public and not for profit sectors, is pleased to announce that, at the Company's general meeting held earlier today, all resolutions put to shareholders were duly passed.
Accordingly, the acquisition of Documotive Limited ("Documotive") ("Acquisition"), a leading software supplier to the social housing sector, and the placing of 500,000,000 new ordinary shares of 0.1 pence each ("Ordinary Shares") (the "Placing Shares"), raising gross proceeds of £5.5 million for the Company, will be complete upon admission to trading on AIM ("Admission") of the Placing Shares becoming effective, which is expected to occur at 8.00 a.m. tomorrow, 18 November 2014.
Montal and Documotive have begun collaborating and working together on client opportunities that augur well for the future. Documotive continues to secure new business, building on its successful financial year to 31 October 2014.
Ian Smith, Chief Executive of Castleton, commented:
"Combining Montal and Documotive creates a stronger business, better placed to provide the social housing sector with the support it needs. The progress already made confirms the qualities we identified in both businesses. I am excited about the opportunity to build a substantial IT business addressing the public and not for profit sectors."
The Company also announces that, due to the high level of demand pre-registered, finnCap, with the agreement of the Company, has exercised in full the option to require the Company to issue new Ordinary Shares (the "Broker Option"). The Broker Option was entered into by finnCap and the Company in order to facilitate non institutional shareholders to acquire further Ordinary Shares in Castleton. Full exercise of the Broker Option results in further gross proceeds of £150,000 being received by the Company.
Furthermore, the Company has allotted 18,181,818 Ordinary Shares pursuant to the conversion of the loan notes issued as part of the consideration for the acquisition of Montal Holdings Limited ("Montal") ("Loan Note Shares").
Admission of the 13,636,363 new Ordinary Shares to be issued pursuant to the Broker Option (the "Broker Option Shares") and the Loan Note Shares is expected to occur at 8.00 a.m. tomorrow, 18 November 2014.
Further details of the Placing, Acquisition and the Broker Option are set out in the announcement and the circular to Shareholders, both dated 30 October 2014, copies of which are available on the Company's website, www.castletonplc.com.
Subsequent to the issue of the Placing Shares, the Loan Note Shares and the Broker Option Shares, the total number of Ordinary Shares in issue will be 1,155,535,538. There are no Ordinary shares held in Treasury and so the total number of voting rights in the Company is 1,155,535,538.
The above 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 Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Enquiries:
Castleton Technology plc Ian Smith, Chief Executive | Tel. +44 (0)845 201 0000 http://www.castletonplc.com |
finnCap Charlotte Stranner/ Simon Hicks | Tel. +44 (0)20 7220 0500 |
MXC Capital Advisory LLP Marc Young Newgate Threadneedle John Coles / Hilary Buchanan | Tel. +44 (0)20 7965 8149
Tel. +44 (0)20 7653 9850 |