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Issue of Equity

11 Jul 2014 11:10

RNS Number : 0982M
LED International Holdings Ltd
11 July 2014
 



LED International Holdings Limited

("LED" or the "Company")

 

Fund raise update and issue of new ordinary shares

 

The board of LED (the "Board") is pleased to provide an update to shareholders following its announcements on 26 February 2014 and on 26 June 2014.

 

The Company, Speedy Dragon Holdings Limited and Rubyfield Holdings Limited (the "Investors") have reached a supplementary agreement in relation to the placing of 3,875,000 new ordinary shares (the "Placing Shares") and the conversion of the working capital loan, further details of which are set out in LED's announcement on 30 December 2013. LED, via its wholly owned subsidiary, Shenzhen Green Pearl Energy Management Services Company Limited, is now in receipt of subscription funds of RMB25,000,000 million (approximately £2.35 million) (the "Subscription Funds") from the Investors. Under the terms of the supplemental placing agreement, payment of the Subscription Funds to LED has been made in full and final settlement of all of the Investors's legal obligations under the original subscription agreements. The Placing Shares are being issued at a price of 75 pence per share representing a premium of 780 per cent. to the closing mid-price on 10 July 2014.

 

LED will use the proceeds of the Subscription Funds for general working capital purposes.

 

Further updates in relation to the issue of convertible loan notes and placing announced on 31 March 2014 will be made at the appropriate time.

 

In addition, LED has also issued 1 ordinary share which has arisen as a fractional entitlement following LED¡¦s recent capital reorganisation (the "Reorganisation Share").

 

An application will be made for the Placing Shares and the Reorganisation Share to be admitted to trading on AIM and it is expected that dealings will commence on 17 July 2014. Following the issue of the Placing Shares and the Reorganisation Share, the Company's issued share capital will be 8,907,935 ordinary shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

 

Following the issue of the Placing Shares, the Investors will be interested, in aggregate, in 43.5% of the enlarged issued share capital of LED. The Placing Shares have been issued to the Investors in equal tranches.

 

 

For further information:

 

LED International Holdings Limited

Stephen Chan - Chief Executive Officer

+852 2243 3100

Allenby Capital Limited

Nick Naylor / Alex Price

+44 (0) 20 3328 5656

 

Notes to Editors:

 

LED International Holdings Limited and its subsidiaries specialize in the provision of EMC contracts under which the Group installs energy saving products in its customers' premises, including lighting and reactance filtering equipment supplied by the Group, and the subsequent savings made by the customers in their electricity charges are then shared between the Group and the customers thereby enabling the Group to generate recurring revenue rather than one-off sales revenue. Historically, the Group's business has been the development, manufacture and sale of low-powered light-emitting diode ("LED") display screens and modules.

 

Under EMC contracts, the Group provides energy efficiency solutions, including LED lighting, reactance filtering energy saving and other energy efficiency solutions.Specifically, the Group overhauls its customers' existing lighting and power consumption systems (which are based on traditional lighting technology and power generation equipment) with proprietary LED lighting products, reactance filtering equipment and other solutions provided by the Group. These energy efficiency products are installed in customers' premises. The Group bears all the upfront costs associated with the supply and installation of the energy efficiency solutions and these costs are then recouped by sharing in the monthly energy savings generated by the customers' use of the energy efficiency solutions over the period of the contracts. The Group receives revenue from customers on several different payment terms including on a pre-payment, monthly or quarterly basis.

 

For more information, please visit: http://www.led-intl.com

 

**Ends**

This information is provided by RNS
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