Last checked at 10 Feb 2011 07:00
| 10 February 2011 | |
SocialGO Plc
("SocialGO" or the "Company")
Placing to raise £1,335,500
SocialGO, the AIM-quoted company specialising in group social networks, is pleased to announce that the Company has placed 45,271,186 new ordinary shares of 1 pence each (the "Placing Shares"), representing approximately 10.18% per cent. of the Company's enlarged issued share capital.
The Placing Shares have been placed with institutional investors at a price of 2.95 pence per share, for gross proceeds of £1,335,500 (the "Placing"). The proceeds of the Placing will fund the launch of SocialGO™ version 2 over the coming months, which in the Directors' opinion will significantly move the business forward.
The Placing is subject to shareholder approval at a General Meeting (GM) of the Company to be convened for 28 February 2011 and to admission to trading on AIM. A special resolution will be proposed at the GM to disapply pre-emption rights in relation to the issue of the Placing Shares (the "Resolution"). The Placing Shares will represent 10.18% of the enlarged share capital of the Company of 444,596,605 ordinary shares.
Today's announcement follows the earlier placing of shares announced on 12 January 2011, which raised gross proceeds of £300,000 for additional working capital. That placing effectively removed the Company's reliance on an equity draw down facility put in place in June 2010 by Veddis Ventures, a significant shareholder in the Company.
Commenting on today's news, Alex Halliday, CEO stated:
"We're very pleased to have been able to take advantage of further demand for our shares, which will secure funding for the upcoming launch of Version 2 of SocialGO, our next generation platform.
"As is evident from the ongoing take-up of SocialGO's offer, a diverse array of interest groups, from schools, sports clubs, churches and political movements, are all wanting a personalised platform on which to interact. That trend is only going to continue and we believe we're uniquely well placed to capture the opportunity."
"We look forward to providing further updates of our progress over the next few months."
The Ordinary Shares to be issued will rank pari passu with the existing ordinary shares of the Company. Application has been made for the new Ordinary Shares to be admitted to trading on AIM, and it is expected that such admission will become effective and dealings will commence in respect of the Placing Shares on 4 March 2011.
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For further information, please contact:
SocialGO plc | |
Dominic Wheatley, Chairman Alex Halliday, CEO | Tel: +44 (0)845 299 7289 |
www.socialgoplc.com |
Canaccord Genuity Limited | |
Mark Williams / Christopher Fincken | Tel: +44 (0)20 7050 6500 www.canaccordgenuity.com |
First Columbus | |
John Nuttall / Chris Crawford / Kelly Gardiner | Tel: +44 (0)20 3002 2070 |
www.first-columbus.com |
Pelham Bell Pottinger | |
Mark Antelme / Jenny Renton / Charlie Stewart | Tel: +44 (0)20 7861 3233894 www.pelhambellpottinger.co.uk |
About SocialGO
SocialGO Plc is a developer and provider of software as a service which allows groups to build their own online social networks, SocialGO™. SocialGO's software allows customers to quickly and easily create, manage and control their own private social network and provides the members of these networks with the ability to communicate and share with like minded people in a controlled and secure environment. SocialGO derives its revenues from subscription premiums paid by network owners and from selling value added services which allows network owners to maximise the social networking experience and the revenues that can derive from creating and managing a social network. SocialGO is part of the burgeoning Silicon Roundabout in London, UK.
www.sgv2.com