ELE.L Regulatory News (ELE)

12 Sep 2007 07:01

Electric Word PLC12 September 2007 12 September 2007 ELECTRIC WORD PLC ("Electric Word" or "the group") ELECTRIC WORD ADDS MAGAZINES TO EDUCATION PUBLISHING Electric Word plc, the specialist information business, today announces that thegroup has entered into an agreement with Special Education Publishing Ltd("SEP") to manage three educational magazines published by SEP aimed at teachersin primary schools, Special Children, Teaching and Learning and PE and SportsToday. The magazines are the only assets of SEP. The management agreement, whichcommenced on 11 September, allows for an ongoing performance-related fee toElectric Word of a minimum of £30,000 per quarter plus an initial integrationfee. Electric Word has also been granted an option to acquire the entire issued sharecapital of SEP, by Sussex Research Ltd, the sole shareholder of SEP and also asignificant shareholder in Electric Word plc. The option is exercisable at anytime between 1 December 2007 and 11 September 2010 for a total consideration of£875,000 to be satisfied by the allotment of 875,000 Convertible PreferenceShares, which will convert into ordinary shares of Electric Word plc ("OrdinaryShares") at a price of 13.25 pence per share unless redeemed in cash at theelection of Electric Word for a 0% coupon at any time prior to the thirdanniversary of the date of exercise of the Option . If converted in full,Electric Word would be required to allot 6,603,773 Ordinary Shares. A resolutionto create the Convertible Preference Shares will be put to shareholders eitherat next year's AGM or at an extraordinary general meeting convened prior tothen. The exercise of the option to acquire SEP will be treated as a related partytransaction under rule 13 of the AIM Rules. Julian Turner, Chief Executive of Electric Word, commented: "These establishedmagazines fit well with our existing portfolio in the niche education market. Weare pleased to be taking them under the group's management and have everyconfidence in their future success." The Group continues to trade ahead of last year and in line with the Board'sexpectations. Julian Turner, Chief Executive Electric Word 0207 954 3470 Helen Thomas / Tim Spratt Financial Dynamics 0207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange