RAM.L Regulatory News (RAM)

25 Sep 2009 09:46



FOR IMMEDIATE RELEASE 25th September 2009

RAM INVESTMENT GROUP PLC 

("RAM" or the "Company")

RAM SIGNS NEW OPTION AGREEMENTS TO ACQUIRE 50.1% OF TRAIN FX LIMITED 

Background

On 7 May 2009, RAM announced the acquisition of 49.9% of Train FX Limited ("Train FX") with an option to acquire the remaining 50.1% from Vision Media Group Plc ("VMG").

Subsequently, VMG went into administration on 10 July 2009. VMG announced that it was suspending its shares from AIM pending an administration process. VMG appointed Mr Trevor Binyon and Mr Steven Parker of Tenon Group Plc as the joint administrators of VMG on 15 July 2009. 

Option Agreement

The Board of RAM announces that it entered into two new option agreements on 24 September 2009 to acquire the remaining 50.1% in Train FX:

OCH Option

Old Church Street Holdings Limited ("OCH") holds 10.1% of the outstanding shares in Train FX and has contracted to acquire a further 15%.  RAM has entered into an option agreement with OCH to acquire OCH's entire holding of 25.1% of the outstanding shares in Train FX for a consideration of 6 million ordinary shares in RAM ("OCH Option"). The OCH Option is at RAM's call only and may be exercised at any time up to 31st March 2010.

TSIF Option

RAM has entered into a second option agreement with the administrators of VMG to acquire the remaining 25% of the outstanding shares in Train FX for a consideration of a £550,000 convertible loan note in RAM ("VMG Option"). The VMG Option is also at RAM's call only and may be exercised at any time up to 31st March 2010. 

The interest rate payable on the convertible loan note is 5% per annum paid quarterly with a redemption premium of 4% per annum to be paid at maturity. The term of conversion is 30 months from the date of the exercise of option. The holder has the right to convert at any time at a price of 13.64p per RAM ordinary share. RAM is also granting the holder, as part of the consideration, an option to acquire 1,466,276 RAM ordinary shares at 13.64p. The options have a maturity period of 60 months. The options can be exercised at any time in part or whole.

Tim Baldwin, CEO of RAM, commented: "The Company is pleased to have completed revised and improved option agreements to enable the Company to acquire the remaining shares not owned in Train FX from the administrator of VMG, without the need for a cash consideration and with an extended timeline to exercise. We believe that the prospects for Train FX are very encouraging and we are pleased to have secured the opportunity of owing 100% of the business. We are working closely with Train FX to advance the business both financially and operationally and we expect to make further announcements to this effect shortly".

For further information please call:

Tim Baldwin    RAM Investment Group plc 0207 518 4303

Sandy Jamieson Libertas Capital Corporate Finance Limited 0207 569 9650

Monisha Varadan Rivington Street Corporate Finance Limited 0207 562 3389