TEG.L Regulatory News (TEG)

6 July 2011

The TEG GROUP PLC (AIM: TEG)

("TEG" or "the Company")

THIS ANNOUNCEMENT (AND THE INFORMATION CONTAINED HEREIN) IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL

Result of Open Offer

On 20 June 2011, the Company announced details of a proposed share issue to raise gross proceeds of up to approximately £3.8 million through a Placing and Open Offer of up to 38,389,485 New Ordinary Shares at a price of 10 pence per New Ordinary Share. 

The Open Offer closed for acceptances at 11.00 a.m. on 5 July 2011. The Company is pleased to announce that valid acceptances have been received for 13,169,917 New Ordinary Shares from Qualifying Shareholders and accordingly the Open Offer was oversubscribed by approximately 73% per cent. All entitlements will be met and excess applications will be scaled back pro rata with 7,622,635 Open Offer Shares being issued pursuant to the Open Offer. Consequently, the Company has conditionally raised a total of approximately £3.8 million before expenses through the Placing and Open Offer.

The Placing and the Open Offer remain conditional upon, amongst other things, the approval of Shareholders at the General Meeting, to be held at 12.00 p.m. today at Westmarch House, 42 Eaton Avenue, Buckshaw Village, Chorley, PR7 7NA and upon Admission occurring by 8.00 a.m. on 8 July 2011 (or such later time or date as the Company may determine). 

Application has been made to AIM for the admission of the 38,389,485 New Ordinary Shares. It is expected that Admission will become effective on 8 July 2011 and that dealings in the New Ordinary Shares will commence at 8.00 a.m. on 8 July 2011. Following Admission, the Company will have 114,615,830 Ordinary Shares in issue.

The New Ordinary Shares, when issued will rank equally in all respects with the Existing Ordinary Shares.

This announcement should be read in conjunction with the full text of the Circular posted to Shareholders on 20 June 2011, copies of which are available on the Company's website at www.theteggroup.plc.uk. Capitalised terms in this announcement have the same meaning as given in the Circular.

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