EUSP.L Regulatory News (EUSP)

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13 November 2013

EU Supply PLC

("EU Supply", the "Group", or the "Company")

Successful placing to raise £5.0 million

Admission to trading

and

First Day of Dealings on AIM

EU SupplyPLC (LSE AIM: EUSP), the e-procurement SaaS provider, is pleased to announce its admission to trading on the AIM Market of the London Stock Exchange at 08:00 today. Dealings in the Company's Ordinary Shares will commence under the ticker EUSP. 

Summary

· The Company has raised £5 million before expenses through the placing of 22,123,894 new ordinary shares (the "Placing").

· The total number of ordinary shares in issue is 57,665,496, giving the Company a market capitalisation at Admission of approximately £13 million, based on the placing price of 22.6 pence per share.

· Funds from the Placing will be used mainly to fund expansion of the Company's sales team, provide working capital to grow the business and to repay borrowings, leaving the Group debt free on Admission.

· Westhouse Securities acted as Nominated Adviser and Broker to the Company.

Background on the Company

EU Supply is the UK holding company of the EU Supply Group, a Sweden-based e-commerce business which has an established, market-leading, multilingual e-procurement platform for e-sourcing, e-tendering and contract management, tailored for the highly regulated European public sector market.

Since 2006, the Group has invested heavily in employing specialist programmers to add functionality, legal compliance as required and security features to its Complete Tender Management™ ("CTM™") platform to ensure that the Group is ideally placed to secure new contracts with EU Member States and their Contracting Authorities. The platform is available in 16 different languages.

The Directors believe that the Group's CTM™ platform is one of the easiest to use and most functionally advanced solutions available in the market. The CTM™ platform is used by over 6,500 European public sector bodies in 10 Member States and has National Procurement System status in four Member States (the UK, Ireland, Norway and Lithuania).

The Directors believe demand for e-procurement solutions in the EU public sector will grow as authorities seek to comply with expected legislation, reduce costs and seek better control and transparency of their procurement processes, therefore the Company is looking to recruit additional salespeople and bid management employees to market aggressively to prospective clients across the Member States.

Commenting on the Placing and Admission to AIM, Thomas Beergrehn, CEO and Founder of EU Supply said: "The high level of interest shown by investors in EU Supply is testament to the strength of our platform, our leadership position and the growth prospects of the business. The funds raised will enable us to capitalise on what we believe to be a significant market opportunity as EU Member States seek means to reduce costs and seek better control and transparency of procurement processes. We look forward to life as a public company with confidence."

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IMPORTANT NOTICE

Defined terms used in this announcement have the same meaning as set out in the Company's admission document dated 7 November 2013.

This announcement does not constitute an admission document relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefore.

Recipients of this announcement who are considering acquiring shares following publication of the admission document are reminded that any such acquisition must be made only on the basis of the information contained in the admission document which may be different from the information contained in this announcement.

Westhouse Securities Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company as Nominated Adviser and broker and for no-one else in relation to the flotation. Westhouse Securities Limited will not regard any other person (whether or not in receipt of this press release) as its client in relation to the flotation and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Westhouse Securities Limited or for providing any advice in relation to the flotation. 

The shares have not been, nor will they be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, Canada, Japan, or South Africa. Subject to certain exceptions, the shares may not be offered or sold in the United States, Australia, Canada, Japan or South Africa or to or for the account or benefit of any national, resident or citizen of Australia, Canada, Japan or South Africa or any person located in the United States. The offer of the shares and the distribution of this announcement in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's evaluation of the potential acquisition) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the formal admission document.