11 Jun 2008 10:43
Global Gaming Technologies plc
("the Company" or "GGT")
Placing raising £250,000
Conversion of Loan
Further to the announcement made by the Company on 29 April 2008 and in response to recent press speculation, the Company is pleased to report that the process of seeking opportunities in the natural resources and mining sector is progressing. The Company has entered into encouraging discussions with parties in the Oil and Gas sector although no deal has yet been concluded and there can be no certainty that any deal will be concluded. A further announcement will be released in due course. In order to fund further investigation into the Company's current opportunities, GGT has agreed a placing of 25,000,000 new ordinary shares at 1p per share raising £250,000 (gross of expenses). Director, Mike Hirschfield, is taking up £20,000 of the placing and, following the placing and loan conversion detailed below will have a beneficial interest, including existing interests, of 2,075,000 ordinary shares representing 0.7% of the enlarged issued share capital.
In addition and further to the authorities obtained at the Company's recent annual general meeting, the Company has converted a loan facility and additional funding loans of £198,750 provided by Corvus Capital Inc. in 2007/8 in order to meet the day-to-day working capital requirements of the Company. The loan funds have been converted at par of 0.25p per share into ordinary shares of the Company. Corvus Capital Inc. already holds 43,930,196 ordinary shares in the Company representing 22.7 per cent. of the issued share capital in the Company. The Board, having consulted Canaccord Adams Limited, the Company's nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned. Prior to conversion of the loan funds, Corvus assigned £100,000 worth of the loan facility to unconnected third parties. Following the Placing and Loan Conversion, Corvus will have an interest in 83,430,196 shares representing 28.02% of the enlarged issued share capital.
Application will be made for the placing shares and loan conversion shares to be admitted to trading on AIM and admission of the same is expected to take place on 18 June 2008.
Following the Placing and loan conversion, the Company will have 297,794,385 ordinary shares in issue and no treasury shares and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company.
In addition, the Directors have agreed to establish an incentive scheme over up to 10 per cent of the Company's issued share capital, from time to time, to incentivise Directors, employees and consultants to assist in the process of achieving the Company's goals.
Enquiries:
Nominated advisor and broker:
Neil Johnson/Andrew Chubb, Canaccord Adams Limited tel: +44 (0) 207 050 6500
John Bick, Hansard Group tel: +44 (0)7917 649362