FST.L Regulatory News (FST)

1 Dec 2009 07:00

1 December 2009 Toumaz Holdings Limited ("Toumaz Holdings' or the `Company") Update on Operations Proposed placing of new ordinary shares Notice of Extraordinary General Meeting

Toumaz Holdings, which has developed the proprietary ultra-low power, wireless AMxTM technology for commercialisation within the healthcare and digital markets is pleased to announce it has conditionally raised 9 million (before expenses) by way of a placing by FinnCap, with new and existing shareholders, of 128,571,429 new ordinary shares of 0.25p each ("Placing Shares") at a price of 7p ("Placing"). The net proceeds of the Placing will be used for working capital to take Toumaz Holdings and its subsidiaries (together, the "Group") to cashflow breakeven.

Background and Trading Update

Toumaz Holdings is focused on commercialising its proprietary AMxTM technology within healthcare and digital broadcasting.

The Board wishes to raise enough money to take the Group to cashflow breakeven with some additional funds as a contingency.

The Group is currently working on the completion of three different chip families:

* the SensiumTM 1.5 for the SensiumTM Plaster which will be sold by CareFusion; * Xenif which includes intellectual property licensed from Imagination Technologies; and * Telran which is the ultra-low power radio chip from the SensiumTM.

The research and development programmes for all three chips is completed, but they each need further engineering work in preparation for mass production. This will include up-front license fees and various software expenses.

It is expected that all three chip sets will start volume production towards the end of 2010. This will require working capital resources to support the building up of inventories.

The Directors expect that the net proceeds of the Placing will provide the Group with sufficient resources to meet its working capital requirements until cashflow breakeven is achieved.

The Placing

The Placing is, among other things, conditional on the passing of a resolution at an Extraordinary General Meeting ("EGM") and the Placing Shares being admitted to trading on AIM, following which Toumaz Holdings will have a total issued share capital of 591,090,351 Ordinary Shares. The Placing Shares will, on issue, rank pari passu in all respects with the existing Ordinary Shares in issue. Application has been made for the Placing Shares to be admitted to trading on AIM for 8.00 a.m. on 18 December 2009.

Serge Grisard, Non-Executive Director and Sir Richard Sykes, Chairman, have subscribed for 250,000 and 714,285 Placing Shares, respectively.

Circular and Notice of Meeting

To enable the Company to satisfy the issue of Ordinary Shares pursuant to the Placing, and to have some headroom to issue further shares, the Company is now seeking to increase its authority to issue new Ordinary Shares at an EGM.

A circular including a notice of EGM has been sent to shareholders today and is available for download from the Company's website at www.toumazholdings.com. The EGM is to be held at 12 p.m. on 17 December 2009 at Place Chevelu 6, 1211 Geneva 1, Switzerland at which an ordinary resolution will be proposed to grant authority to allot and issue, otherwise than pro-rata to existing members, the Placing Shares and up to 59,109,035 further new Ordinary Shares (being 10 per cent of the Company's issued share capital as enlarged by the Placing Shares) to give the Directors flexibility to issue further shares should the opportunity arise.

-end- www.toumazholdings.com www.toumaz.com Enquiries:Patrick Toumaz Holdings Tel: +44 (0) 7979 77879 Stephansen Limited Charles FinnCap Tel: +44 (0) 207 600 Cunningham 1658 Kirsty Corcoran Hansard Group Tel: +44 (0) 20 7245 1100 John Bick Tel: +44 (0) 7872 061007