Torotrak PLC Regulatory News (TRK)

13 Jul 2007 12:45

Torotrak PLC13 July 2007 For immediate release Torotrak plc Proposed placing and open offer 13 July 2007 Torotrak plc (the "Company" or "Torotrak") is pleased to announce that itintends to undertake a firm placing and open offer of new ordinary shares (the"Issue"). It is intended that approximately £5.0 million net of expenses will be raised bythe issue of new ordinary shares by way of a placing to institutional and otherinvestors by Arbuthnot Securities at a price of 30p per ordinary share (the"Issue Price"). In addition, it is proposed that up to a further £1.75 million will be raised bythe Company pursuant to an Open Offer to shareholders (the "Open Offer") at theIssue Price. Shareholders will be able to apply under the Open Offer for sharesin excess of their entitlements. To the extent that excess applications arereceived, such applications will be scaled back such that funds raised from theOpen Offer will not exceed £1.75 million. To the extent that entitlements arenot taken up in full and if excess entitlements do not satisfy the Open Offer,the balance of shares will be subscribed for by the Torotrak Employee ShareTrust (the "EST"). Any subscription by the EST will not provide additionalfunds for the Company. The Issue is subject to shareholder approval. A prospectus and a notice ofExtraordinary General Meeting will be sent to Torotrak shareholders and, subjectto the approval of the UK Listing Authority, it is anticipated this will bedespatched during the week commencing 16 July 2007. The funds raised will be used to strengthen the Company's balance sheet and toprovide further working capital to help secure major potential new customers,with two current major licence agreements at an advanced stage of negotiation.The funds will also be used to further develop the Infinitrak joint venture inthe Outdoor Power Equipment market to capitalise on its significant marketpotential following the commencement of pilot production in March 2007. Inaddition, the Company is in discussions to invest in a potential new jointventure to enhance future returns and accelerate market penetration in the OffHighway market. A further announcement will be made by the Company in relation to the Issue indue course. For further information contact: Torotrak: Telephone 01772 900938Dick Elsy, Chief ExecutiveJeremy Deering, Finance Director Arbuthnot Securities: Telephone 020 7012 2000Richard DunnIan Williams Tavistock Communications Telephone 020 7920 3150Simon HudsonLulu Bridges This information is provided by RNS The company news service from the London Stock Exchange