GRN.L Regulatory News (GRN)

16 Jan 2006 07:00

Gravity Diamonds Limited16 January 2006 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 16 January 2006 GRAVITY DIAMONDS RAISES $5.5 MILLION UNDER 1 FOR 4 NON-RENOUNCEABLE PRO RATA RIGHTS ISSUE The company is pleased to report strong shareholder support for the recentlyconcluded rights issue. Had all shareholders taken up their full entitlement, $12.6 million would havebeen raised through the issue of 30 million new ordinary shares and 15 millionattaching options (on a 1 for 2 basis). Eligible shareholders have subscribed for 10.18 million new ordinary shares fora total of $4.3 million. In addition, existing eligible shareholders haveapplied for a further 2.96 million "shortfall" shares over and above theirentitlement, representing another $1.24 million. As a result, the company will be allotting 13.14 million new ordinary shares and6.57 million attaching options to accepting shareholders under the rights issue. Post the resumption of normal trading on 20 January 2006, the directors willprogress their efforts to place the shortfall of 16.9 million shares. They willdo so at a price not less than the Offer Price of 42 cents per new share underthe prospectus in relation to the closed rights issue. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: 00-61-3-9909-7655Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel:00-61-3-9909-7655Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 This information is provided by RNS The company news service from the London Stock Exchange