Stilo Regulatory News (STL)

1 Nov 2006 11:14

Stilo International PLC01 November 2006 1 November 2006 STILO INTERNATIONAL PLC Proposed Subscription (the "Subscription") of 7,500,000 New Ordinary Shares at 2.0 p per share to raise £150,000 Stilo International plc ("Stilo" or the "Company"), the AIM listed software andservices company, today announces a proposed issue of 7,500,000 new ordinaryshares (the "Subscription Shares") raising £150,000 before expenses. The Subscription is subject to approval by shareholders at an extraordinarygeneral meeting to be held on 11.30am on 27 November 2006. If approved it isexpected that the Subscription Shares will be admitted to trading on AIM on 28November 2006. Background to and reasons for the Subscription The Company announced on 31 July 2006 the acquisition of the business andcertain assets of Proceed Engineering Solutions Limited and Proceed HoldingsLimited ("Proceed") by its subsidiary Stilo Technology Limited. Stilo confirmedat the time of the interim results announcement on 6 September 2006 that tradingshowed continuing improvement over 2005 and that the Proceed acquisition had gotoff to a very encouraging start. The board is pleased to confirm that progress continues at Proceed and acrossthe Company. As also stated in the interim announcement, the board continues toinvest further in the business, and to explore further acquisitionopportunities. While Stilo has sufficient financial resources to achieve thisplanned growth, the board has identified opportunities to accelerate growththrough additional investment. In response to support from Chief Executive Les Burnham and certain otherinvestors, the board is undertaking the Subscription to provide further workingcapital in order to help fund existing and potential future development. MrBurnham will be subscribing for 3,000,000 Subscription shares for a totalconsideration of £60,000. Details of the Subscription The Company is proposing to raise £135,000 (net of expenses), by way of aSubscription for 7,500,000 new ordinary shares at 2.0 pence per new ordinaryshare. The Subscription Shares represent 7.48 per cent. of the issued sharecapital of the Company as enlarged by the Subscription. Following the Subscription Les Burnham will have a beneficial interest in3,000,000 ordinary shares, representing 2.99 per cent. of the then issued sharecapital of the Company. Following the Subscription the Company's issued share capital will comprise100,228,470 ordinary shares. Further details of the background to and reasons for the Subscription are setout in a circular which is to be posted today the full text of which is set outin the Company's website www.stilo.com. Further copies of the circular areavailable from the Company at Regus House, Windmill Hill Business Park,Whitehill Way, Swindon SN5 6QR. Enquiries: Les Burnham, Chief Executive, Stilo International plc 01793 441444 Russell Cook, Charles Stanley Securities 020 7149 6000 This information is provided by RNS The company news service from the London Stock Exchange