Provexis Regulatory News (PXS)

6 Jun 2006 12:35

Provexis PLC06 June 2006 6 June 2006 PROVEXIS PLC ("Provexis" or the "Company") Standby Equity Distribution Agreement for up to £3m Provexis, the nutraceutical company that develops scientifically-provenfunctional and medical foods, announces that on 5 June 2006, it entered into aStandby Equity Distribution Agreement ("SEDA") with Cornell Capital Partners, LP("Cornell"). Pursuant to the SEDA, the Company may, at its discretion, periodically sell toCornell, ordinary shares of 1p each in the Company, for a total purchase priceof up to £3.0 million. For each ordinary share purchased under the SEDA, Cornellwill pay the Company 95 per cent. of the lowest volume weighted average price ofthe Company's ordinary shares for the 5 days immediately following the noticedate. Cornell will also retain 5 per cent. of each advance under the SEDA.Cornell's obligation to purchase the ordinary shares under the SEDA is limitedto £50,000 per weekly advance. The amount and timing of all advances under theSEDA are at the discretion of the Company and the Company is not obligated toissue and sell any securities to Cornell, unless and until it decides to do so. In connection with the SEDA arrangement, an implementation fee of £90,000 willbe paid to Cornell by the issue of 1,037,608 new ordinary shares of 1p each.Application has been made for the admission of the 1,037,608 new ordinary sharesto trading on AIM, and dealings are expected to commence on 12 June 2006. Dr Stephen Franklin, the CEO of Provexis, said, "We are very pleased to have entered into this agreement with Cornell Capital.The SEDA is an innovative product which provides the Company with financialassurance for the short to medium-term. Should we choose to use it, the facilityprovides us with advances at our discretion thereby increasing our options andstrengthening our position." For further information please contact: Stephen Franklin, Chief ExecutiveProvexis plc Tel: 020 8392 6631 Victoria GeogheganBell Pottinger Corporate & Financial Tel: 020 7861 3232 Tom Griffiths Tel: 020 7012 2000Arbuthnot Securities Limited This information is provided by RNS The company news service from the London Stock Exchange