Last checked at 3 Dec 2009 07:00
For immediate release 3 December 2009
Ultima Networks plc
("Ultima" or the "Company")
Placing to raise £1.0 million (the "Placing")
Ultima, the AIM listed green technology company, announces that it has conditionally raised £1.0 million (before expenses) through a placing arranged by the Company's nominated adviser, Allenby Capital Limited, of 71,428,574 new ordinary shares in the Company (the "Placing Shares") at a price of 1.4 pence per ordinary share (the "Placing Price"). The Placing Shares will represent 25.86% of the Company's enlarged issued ordinary share capital.
The net proceeds of the Placing will be used by the Company for the development of its solar park operations in Italy. Specifically, the funds will be put towards the construction and commissioning of an initial 1MW solar park in the Puglia region of Southern Italy, which is being developed by the Company's Green Power division. As well as the Placing funds, Ultima intends to put in place debt financing of c.£3.0 million to facilitate the construction of this 1MW solar park. The Company is in early stage discussions with potential debt funders in Italy to provide such funding although at this stage there is no guarantee that such debt funding will be provided or as to the terms of such debt funding.
As announced in November 2008 the Company owns 22 hectares of land in the Puglia region of Southern Italy on which it is developing solar power generation capacity. The Company has planning permission and authorisations to build a total of three 1MW solar parks in this region and the acquired land has sufficient space for a further two 1MWs for which authorisation applications are in progress.
As part of the Placing, Professor Humayun Mughal (Chairman and Chief Executive Officer of the Company) has subscribed for 5,357,143 Placing Shares at the Placing Price and Yasmin Mughal (wife of Humayan Mughal) has subscribed for 1,071,429 Placing Shares at the Placing Price. Following completion of the Placing Professor Humayun Mughal and his connected parties will be interested in 109,789,462 ordinary shares in the Company representing 39.75% of the enlarged issued ordinary share capital.
In addition, as part of the Placing, Allenby Capital Limited have subscribed for 8,214,286 Placing Shares, at the Placing Price, representing 2.97% of the enlarged issued ordinary share capital. The Company has also issued Allenby Capital Limited with warrants to subscribe for 2,761,765 new ordinary shares of 1p each in the Company. The exercise price is 1.4 pence per ordinary share and the warrants are exercisable at any time within five years from Admission (as defined below).
Application will be made for the Placing Shares (which when issued and fully paid will rank pari passu in all respects with the existing ordinary shares) to be admitted to trading on AIM ("Admission") and Admission is expected to be effective on 8 December 2009. Following Admission, the Company will have 276,176,538 ordinary shares in issue.
Professor Humayun Mughal, Chairman and Chief Executive Officer of Ultima, said:
"I am delighted with the support that we have received in this equity fundraising, which will enable us to commence development of our solar activities in Southern Italy. I look forward to making further announcements on this exciting development in due course."
For further information, please contact:
Ultima Networks plc Tel: 01279 821 200 Humayun Mughal, Chairman and Chief Executive Officer
Allenby Capital Limited (nominated adviser) Tel: 0203 328 5656 Nick Naylor Nick Athanas
Jamie Boyd
Threadneedle Communications Tel: 0207 653 9850 Graham Herring Alex White
About Ultima Networks Plc
Ultima operates three divisions:
Green Power - involved in the development of solar power parks in Italy and Spain
Green Technology - responsible for the design, development and distribution of electric bicycles and other green technology products
IT and related services - develops and supplies computer-based application software and services to the legal profession