Northern Bear Regulatory News (NTBR)

14 May 2007 07:01

Northern Bear Plc14 May 2007 14 May 2007 NORTHERN BEAR PLC Acquisition of CHIRMARN HOLDINGS LIMITED Acquisition of asbestos removal specialist The board of Northern Bear Plc ("Northern Bear" or "the Company") is pleased toannounce the acquisition of Chirmarn Holdings Limited ("Chirmarn") and itssubsidiaries, Chirmarn Limited and Chirmarn (Surveying) Limited. Chirmarn, basedin the North East, specialises in the identification, treatment, safe removaland disposal of all types of asbestos at both commercial and residential sites.The directors of Northern Bear believe that this acquisition is a good strategicfit for the Company's group. In the year ended 30 November 2005, Chirmarn reported turnover of over£3,100,000, an operating profit of £618,000 and net assets of £1,497,000. The consideration to be paid for the entire issued share capital of Chirmarn is£3.728 million ("the Consideration"). The Consideration is to be satisfied bythe payment of £2.58 million in cash from the Company's existing resources andby the allotment of 820,000 Ordinary Shares in the capital of the Company, at anissue price of £1.40 having a value of £1,148,000. These shares will be issuedat completion and expected to begin trading on AIM on 18 May 2007. As a result of the issue of new shares as part of the Consideration, the sharestructure of the Company will now comprise 13,046,583 issued Ordinary Shares of1p each, with each share carrying the right to one vote. In addition there are 882,718 shares under option held by executives in theCompany and it is anticipated that there will be warrants totalling 1,050,000which were approved in principle by the Remuneration Committee following thesuccessful acquisition of Chirmarn, to be issued and priced at the firstopportunity when the Company is not in a closed period. For further enquiries please contact: Graham Forrest, CEO, Northern Bear Plc: +44 191 3712934 This information is provided by RNS The company news service from the London Stock Exchange