LWRF.L Regulatory News (LWRF)

JSJS DESIGNS PLC

 (AIM: JSJS)

Issue of New Equity

JSJS Designs Plc ("JSJS" or "the Company"), specialists in the design, development and manufacture of home automation systems using its LightwaveRFTM technology to enable consumers to remotely operate everyday household appliances, announces a placing raising £535,000, before expenses ("the Placing").

A circular will be posted to provide Shareholders with the background to and reasons for the Placing("the Circular"). In addition, the Circular will contain a notice convening a general meeting of the Company on 17 April 2013 at which Shareholders' approval will be sought to approve the resolution necessary to complete the Placing ("the Resolution").

The issue of the new ordinary shares that are the subject of the Placing ("Placing Shares") is conditional on the passing by Shareholders of the Resolution, which will give the Directors authority to allot the Placing Shares otherwise than on a pre-emptive basis. Subject, inter alia, to the passing of the Resolutions at the General Meeting, the Placing Shares are expected to be admitted to trading on AIM on or about 8.00 a.m. on 18 April 2013 ("Admission").

The Directors have irrevocably undertaken to vote in favour of the Resolutions in respect of their holdings of 174,875,000 Ordinary Shares, representing, in aggregate, approximately 47.34 per cent. of the Company's existing issued Ordinary Shares.

Background to and reasons for the Placing

At the start of the 2011 financial year JSJS announced a placing which raised £1 million gross to allow the Company to pursue sales opportunities and increase its revenue. Since the fundraising JSJS has announced the following achievements:

·; receipt of the first licence order fee worth £300,000 from Electrium Sales Limited (part of Siemens) ("Electrium") and the subsequent availability of Siemens and LightwaveRF branded products at B&Q outlets;

·; the launch of a new heating control product range incorporating the LightwaveRF Remote Controlled Radiator Thermostat and Electrical Inline Relay Switch;

·; the on-line distribution of LightwaveRF products by Maplin Electronics;

·; the rollout of LightwaveRF products to City Electrical Factors;

·; the first order from the QVC home shopping channel;

·; the first order of LightwaveRF products by Screwfix;

·; a partnership with First Utility to supply the LighwaveRF WiFi link and energy monitor when customers sign up to certain tariffs;

·; an agreement with Micro-P Limited, the IT distribution specialists, as a new distribution partners;

·; the launch of its new website at www.lightwaverf.com;

·; the launch and stocking of its product by Ebuyer.com and a sales launch by Dabs and BTShop of JSJS's home automation range of LightwaveRF products:

·; the launch by Amazon of JSJS's home automation range of products; and

·; the commencement of a store rollout by Maplin Electronics into 20 of its stores of JSJS products, the initial stocking order for which was approximately £80,000.

Despite the above achievements the Company has been impacted by the reluctance of distributors and retailers to commit capital to the stocking of new product ranges. The Company's experience has been that retailers typically request an internet trail before store rollout or a rollout to a very limited number of stores. Therefore, the total value of orders placed to date, and hence the cash generated from sales, has been lower than the costs incurred in delivering the marketing drive and maintaining the Company's ability to fulfil anticipated orders. As a result, the Company has undertaken the placing to meet the gap funding requirement and provide working capital for the year ahead.

The net proceeds of the Placing will be used to fund the Company's working capital requirements and to continue the development of the LightwaveRF range of products .

Mike Lord Chairman and CEO commented:

 "We are delighted that we have been able to raise this money to help us accelerate the current strong growth of the business in difficult economic conditions. Whilst the offer price seems generous the Directors are satisfied that the funding is necessary to ensure the development of the business. We have made very significant announcements about progress with our distribution channels over recent weeks and we are confident that this progress will continue given our strong new product introduction pipeline and new retail opportunities."

Details of the Placing

The Company has agreed a conditional placing of 178,333,333 New Ordinary Shares at a price of 0.3 pence per share to raise £535,000, before expenses. The Placing is conditional on, inter alia, shareholders' approval to the Resolution. The Placing Price represents a discount of approximately 51 per cent. to the closing mid-market price of 0.615 pence per Ordinary Share on 21 March 2013.

Pursuant to the terms of the Placing Agreement, WHI, as agent for the Company, has agreed to use reasonable endeavours to procure subscribers for the New Ordinary Shares at the Placing Price. The obligations of WHI under the Placing Agreement are conditional upon, inter alia, Admission becoming effective on or before 8.00 a.m. on 18 April 2013 (or such later time and date as the parties may agree, not being later than 8.00 a.m. on 30 April 2013). The Placing Agreement contains provisions entitling WHI to terminate the Placing Agreement at any time prior to Admission in certain circumstances. If this right is exercised before Admission the Placing will not proceed.

Immediately following Admission the New Ordinary Shares will represent approximately 32.6 per cent. of the Company's Enlarged Share Capital.

Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will become effective at 8.00 a.m. on 18 April 2013.

The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued. It is expected that CREST accounts will be credited with entitlements to New Ordinary Shares as soon as practicable after 8.00 a.m. on the day of Admission and that share certificates (where applicable) will be despatched as soon as practicable after Admission.

About JSJS Designs

JSJS Designs develops home automation systems to enable consumers to remotely operate everyday household appliances such as lighting, heating, air conditioning, door entry, audio, video and security. The Company is targeting the potentially significant mass market as consumers increasingly seek to "retro-fit" smart home technologies into their homes and, in the longer term, the "extra care" residential market where there is demand from the providers of such schemes to enable independent living for the elderly and physically immobile.