Image Scan Holdings Regulatory News (IGE)

21 May 2007 12:18

Image Scan Holdings PLC21 May 2007 21 May 2007 Image Scan Holdings plc ("Image Scan" or "the Company") (AIM:IGE) Placing of 20 million new ordinary shares to raise £3 million & Trading Update The Board of Image Scan announces today it has raised £3 million before expensesvia a placing of 20,000,000 new Ordinary Shares of 1p each (the "Placing") at aprice of 15p per share. The funds will be used for working capital and toaccelerate the growth of the Company. Image Scan's core business is focused on the development and commercialisationof market leading real-time 3D and 2D x-ray solutions for use in the globalindustrial and homeland security inspection markets. The industrial inspectionsolutions include the MDXi unit and the X-Line systems. The security portfolioincludes a unique 3D baggage inspection system for corporate and airportsecurity and TPXi, a portable bomb and suspect package detection system. The Company's portfolio of clients over the last year have included 'blue chip'names such as Johnson Matthey, British Nuclear Group, British Transport Police,Rapiscan Systems Ltd, Crown Cork & Seal, a Johnson & Johnson company and theTransport Security Administration. Use of Proceeds The funds raised from the Placing will be used to: - Invest in product development to further improve the Company's competitive position; - Expand sales, marketing and distribution to manage the strong pipeline of potential customers and secure additional orders; - Strengthen resources to better serve customers; - Provide the necessary working capital for continued growth; and - Assess possible strategic acquisitions. Placement Details The Placing is conditional upon shareholder approval at an Extraordinary GeneralMeeting (the "EGM"), which has been convened to be held on 14 June 2007. Subjectto the passing of the relevant resolutions at the EGM, the Company will applyfor the Placing Shares, which will rank pari passu with the existing ordinaryshares, to be admitted to trading on AIM and expects that admission will occuron 15 June 2007. Following the allotment, the total issued share capital of theCompany will increase to 54,948,120 ordinary shares. Copies of the circular and notice convening the EGM have been despatched toshareholders and are available from the offices of the Company at PeraInnovation Park, Nottingham Road, Melton Mowbray, Leicestershire, LE13 0PB. Members of the Company's management, staff and immediate families will beparticipating in the placing, including 4 directors of the Company whosedealings are as follows: Director Existing Shares acquired Total shares Total % holding holdingNicholas Fox 2,485,121 46,667 2,531,788 4.6%Louise George 100,000 48,000 148,000 0.3%Robin Higgons - 73,333 73,333 0.1%Peter Woods 1,420,571 166,667 1,587,238 2.9% Update on Trading The Company has released its interim statement for the 6 months to 31 March2007. The Interim financial statements show continued improvement with turnoverincreased by 50% to £1.1m, gross margins strengthened to 50% and the loss forthe period down to £60,000. At the period end prospects for the Company werestrong with the order book at £945,000. Since the period close we have seen neworders for our Service Division, in respect of installed equipment in the USA,and continue to see excellent progress on current contracts and development ofour sales pipeline. Commenting on the Placing, Nicholas Fox, Image Scan's CEO, said: "The result of this placing will provide the Company with the necessaryresources and working capital to optimise the opportunities we have created andaccelerate future growth. Over the last few years the Company has worked hard to consolidate itstechnology into a viable product portfolio to satisfy market needs. This efforthas been strongly validated through our success in marketing these systems to"blue chip" customers, providing us with a strong base from which we can nowrapidly expand." Enquiries: Image Scan Holdings plcPeter Woods, Chairman Tel: +44(0) 1664 503 600Nicholas Fox, CEOinfo@ish.co.uk Seymour Pierce LimitedDavid Newton Tel: +44 (0) 20 7107 8000davidnewton@seymourpierce.com Bishopsgate Communications LtdDominic Barretto Tel: +44(0) 207 562 3350Jenni Herbertjenni@bishopsgatecommunications.com This information is provided by RNS The company news service from the London Stock Exchange