Last checked at 23 May 2018 12:37
23 May 2018
Starcom Plc
("Starcom" or the "Company")
Placing
Starcom (AIM: STAR), which specialises in the development of wireless solutions for the remote tracking, monitoring and protection of a variety of assets and people, is pleased to announce that the Company has conditionally raised £365,000 before expenses through a placing by Peterhouse Capital Limited of 14,600,000 new Ordinary Shares of no par value (the "Placing Shares") at a price of 2.5p per Placing Share, being the closing bid price on 22 May 2018 (the "Placing"). The Placing is with new and existing shareholders.
The Company is experiencing significant growth in revenues which it expects to continue following the early launch of the Watchlock Cube and increased demand from CropX, one of the Company's main customers. The net proceeds of the Placing will be used to build on this current growth and also enable the Company to negotiate more favourable terms with suppliers.
Application for Admission
Application has been made for the Placing Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM ("Admission"). It is anticipated that Admission will become effective at 8.00 a.m. on 29 May 2018.
Total voting rights
Following Admission, the Company's enlarged issued share capital will comprise 273,142,846 Ordinary Shares. The Company does not hold any shares in treasury. Therefore, the total number of Ordinary Shares with voting rights will be 273,142,846. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Michael Rosenberg, Chairman of Starcom commented, "The funds from the Placing will primarily allow us to respond to market demand for our products, while giving us more negotiating power with our suppliers. The accelerated launch of the Watchlock Cube, some three months ahead of schedule, means that an increase in manufacturing is highly likely and we believe it prudent to be prepared for this possibility.
"The increase in revenues which the board reported at the end of Q1 in its AGM statement on 9 April is continuing into the second quarter."
Market soundings, as defined in the Market Abuse Regulation ("MAR"), were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.
Enquiries
Starcom Plc
Michael Rosenberg, Chairman 07785 727 595
Avi Hartmann, CEO +972 5447 35663
Northland Capital Partners Limited (Nominated Adviser and Broker) 020 3861 6625
Matthew Johnson / Edward Hutton (Corporate Finance)
John Howes (Sales and Broking)
Peterhouse Capital Limited (Joint Broker) 020 7469 0930
Lucy Williams / Duncan Vasey / Eran Zucker
Leander PR (Financial PR) 07795 168 157
Christian Taylor-Wilkinson