Tavistock Regulatory News (TAVI)

2 Mar 2005 07:01

Bright Things plc02 March 2005 Bright Things PLC ("Bright Things" or the "Company") Conditional Placing and Notice of Extraordinary General Meeting The Company announces that it is proposing to raise £6 million before expensesby a placing of 4,000,000 new Ordinary Shares (the "Placing Shares") at 150p perOrdinary Share (the "Placing Price"). Corporate Synergy Plc, as agent for the Company, has agreed to use itsreasonable endeavours to place the Placing Shares at the Placing Price withinstitutional and other investors, subject to inter alia the passing of aresolution at the Extraordinary General Meeting convened to permit the placingto proceed, and the Placing Shares being admitted to trading on AIM. The PlacingPrice represents a discount of 14.53 per cent. to the closing mid market priceof 175.5p on AIM as at 1 March 2005, the date of publication of the EGM circularto shareholders in the Company. The Placing Shares will, when issued and fullypaid, rank pari passu in all respects with the existing issued Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIMand trading in the Placing Shares is expected to commence on 29 March 2005. Reasons for the Placing The Company was admitted to AIM in April 2004, raising £4.5 million beforeexpenses. The funds raised at admission were set aside to assist the Company inthe development of both its hardware and software, to secure licensingagreements, on which the software is to be based, and to provide the Companywith ongoing working capital. Since admission, the Company has developed a working prototype of Bubble (itsremote control device that transforms a DVD player into an interactiveeducational games device) and anticipates having a production model availableshortly. In addition, the Company has entered into licensing agreements securinglicences to characters such as Thomas & Friends(TM), The Teletubbies(TM) andPostman Pat(R). The Company is in the final stages of developing 6 working gamesusing a number of these characters. The Company has also entered into a threeyear distribution agreement with Bandai UK Ltd covering the UK and the Republicof Ireland, under which Bandai has agreed to purchase from Bright Things aminimum of 100,000 Bubble consoles and 200,000 units of associated software inthe first year. The Company is pleased with the progress it has made to date. The Company is now proposing to raise £6 million, before expenses, and intendsto apply the funds as follows: Software development - Since the Company's admission to AIM, it has securedlicensing agreements over more characters than was originally anticipated andtherefore intends to use approximately £1.8 million to develop new softwareproducts for use with Bubble; Software localisation and translation - Approximately £2.5 million will be usedfor software development based on indigenous licenses in certain export marketsand to localise the Company's existing software; and Balance sheet stability - the balance of the funds will be used to strengthenthe Company's balance sheet. Dominic Wheatley, chief executive officer of the Company commented: "We arepleased to have raised additional funds for the Company pursuant to the Placing,which will assist us in the development of the business". For further information please contact: Justin Lewis, John Prior, Corporate Synergy Plc: 0207 626 2244Giles Croot, Brunswick Group: 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange