Last checked at 22 Mar 2021 07:00
22 March 2021
Mobile Streams plc
("MOS" or "the Company")
Over-subscribed placing of £2.0 million gross at 0.25p per share
Total Voting Rights
£0.2m Broker Option for up to 80,000,000 Ordinary Shares at 0.25p per share
Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is pleased to announce the successful completion of a placing (the "Placing"), arranged by the Company's Broker Peterhouse Capital Limited ("Peterhouse"), to raise £2,000,000 before expenses to support the continuing growth of the Group.
A total of 800,000,000 ordinary shares of 0.01p nominal value each ("Placing Shares") have been placed conditional only on Admission with investors at 0.25p per share, a discount of approximately 30% to the closing mid‐market price prior to the Placing of 0.315p on 18 March 2021 (being the closing price on the day before the placing was arranged) and a discount of 43.2% to the closing price of 0.44p on 19 March 2021 (being the last closing price on the day before the announcement of the Placing). Each Placing share will rank pari passu with existing Ordinary Shares and will be issued with one warrant per share exercisable at 0.5p per share for a period of one year from the date of admission of these new Shares to AIM, which is expected to be on or around 26 March 2021.
The Placing Shares represent approximately 40.5% of the enlarged share capital of the Company and together with the attached warrants and Broker option (as described below) would represent approximately 59.9% of the diluted issues share capital (assuming no other warrants or options are exercised).
Lesley, Oliver and Nicola Burton, being members of Nigel Burton's family, have subscribed £60,000 in aggregate for 24,000,000 Shares as part of the Placing. These subscriptions are considered de minimis for the purposes of AIM Rule 13 and have therefore not been treated by the Company as a Related Party Transaction.
Total Voting Rights
Following the issue of the Placing Shares as described above, the Company's issued share capital consists of 1,976,236,750 ordinary shares with a nominal value of 0.01p each, with voting rights ("Ordinary Shares"). The Company does not hold any Ordinary Shares in Treasury.
The above figure of 1,976,236,750 may be used by shareholders in the Company as the denominator for the calculation 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 under the FCA's Disclosure Guidance and Transparency Rules.
Broker Option
To provide existing shareholders who did not participate in the Placing with the opportunity to do so, the Company has granted an option (the "Broker Option") to Peterhouse, subject to the completion of the Placing, to subscribe for up to an additional 80,000,000 new Shares (the "Broker Option Shares") at the Placing Price, exercisable before 5:00pm on 23 March 2021. Depending on demand, the number of Broker Option Shares subject to the Broker Option may be increased at the discretion of the Company with the written agreement of Peterhouse. As far as is practical, participation in the Broker Option will be prioritised for shareholders (direct or indirect) on the register at the close of business on 19 March 2021 ("Existing Shareholders"). If the Broker Option is fully taken up, it will raise an additional £0.2 million. If the Broker Option is not fully subscribed by 5:00pm on 23 March 2021, orders from eligible investors will be satisfied in full, and the balance of the Broker Option shall lapse.
Use of Proceeds
The net proceeds of the Placing, including any exercise of the Broker Option, will provide a substantial amount of working capital both for the Group's existing businesses and those which could be developed in the future both internally and through joint ventures, partnerships or by acquisition. The Board is actively reviewing a number of potential opportunities to strengthen the Group's technical and intellectual property portfolio, and to accelerate growth, including in complementary markets. The Board intends to retain strict financial discipline, with any remuneration for the forthcoming year to be paid in shares at the Placing price rather than in cash.
Nigel Burton, Non-Executive Director, commented:
"The Board would like to thank shareholders for their support, and Peterhouse Capital for their swift and efficient implementation of this Placing, which will enable the Company to accelerate its plans for growth.
"As announced on 18 March, the Company is working closely with Quanta Media Group Holdings ("QMGH") to realise the potential from a number of possible opportunities for growing the MOS mobile gaming business and driving greater revenue from legacy MOS IP, including the Company's mobilegaming.com domain.
"Further announcements will be made as the Company implements its plans for growth in the coming weeks and months."
Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the FCA, is acting as Nominated Adviser ("Nomad") to the Company in connection with the Placing, the terms of which have been agreed solely between the Company and its Broker, and will not be acting for any other person or otherwise be responsible to any person for providing the protections afforded to clients of Beaumont Cornish or for advising any other person in respect of the matters set out in this announcement or any transaction, matter or arrangement referred to in this announcement. Beaumont Cornish's responsibilities as the Company's Nomad are owed solely to London Stock Exchange and are not owed to the Company or to any Director or to any other person in respect of his or her decision to acquire any shares in the Company.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information, please contact:
Mobile Streams plc
Nigel Burton, Non-Executive Director
+44 77 8523 4447
www.mobilestreams.com
Beaumont Cornish (Nominated Adviser)
James Biddle and Roland Cornish
+44 (0) 20 7628 3396
Peterhouse Capital Limited (Broker)
Lucy Williams, Duncan Vasey and Eran Zucker
+44 (0) 20 7469 0936