Transense Regulatory News (TRT)

 29 June 2012

Transense Technologies plc

Placing of 17,560,000 ordinary shares to raise £1.756 million

Transense Technologies plc (AIM: TRT) ("Transense", the "Company" or the "Group") the AIM listed technology company that develops sensor systems for the automotive and industrial markets, today announces that it has conditionally placed 17,560,000 ordinary shares of 1p each ("Ordinary Shares") at a price of 10 pence per share with institutional and other investors (the "New Ordinary Shares"), for gross proceeds of £1.756 million (the "Placing"). The placing price represents a discount of 13% to the closing price on 28 June 2012 of 11.5 pence. Hybridan LLP acted as broker to the Placing. 

The Company intends to use the net proceeds of £1.6 million from the Placing for the following purposes:

·; Increasing sales force, marketing spend and facilitating greater implementation;

·; Increasing the level of product trials with future customers; and

·; Additional working capital requirements following increased sales and anticipated continued future growth.

The New Ordinary Shares have been placed firm. Of these, 12,000,504 have been placed subject only to admission to trading on AIM (the "First Placing Shares"), with the balance of 5,559,496 New Ordinary Shares (the "Second Placing Shares") being placed subject to shareholder approval at a general meeting of the Company to be convened shortly (the "GM") and subject to admission to trading on AIM.

Chief Executive Graham Storey said: 

"The Board is pleased to have raised the funds required to accelerate Transense's developing commercial opportunities and looks forward to driving the growth of the business, building upon its current momentum."

Background

The Company has conditionally raised £1.756 million (before expenses) in order to continue the progress made to date by further executing the Company's strategy, in particular, to accelerate the pace at which it addresses the opportunities arising within the Group, and for working capital purposes. The Board proposes investing further in product development and developing its sales and marketing approach. These initiatives support the Company's objectives in taking a leading position in both the rapidly expanding commercial and off-the-road (OTR) tyre management solution market, and the electrical switchgear monitoring market via its respective trading divisions, Translogik and IntelliSAW.

The funds will also be used to increase production efficiencies, attract high quality engineers, lease more suitable premises and further reduce operating costs.

As previously announced, the Company has recently secured initial orders for its products in both transportation and power generation applications. As stated in the relevant announcements, a number of these initial orders have the potential to be extended or to lead to additional contracts, which is expected to provide improving visibility on conversion of the Company's new business pipeline. Although neither the timing nor size of any such extension or new orders can be certain, the Board reasonably expects near term progress to be made with further announcements likely to be made. It is possible (although by no means certain) that one such contract may materialise before the closing of the Second Placing; further announcements will be made as required.

Placing

Transense has placed 17,560,000 ordinary shares of 1p each ("Ordinary Shares") at a price of 10 pence per share with institutional and other investors (the "New Ordinary Shares"), for gross proceeds of approximately £1.756 million (the "Placing"). Hybridan LLP acted as broker to the Placing. 

Of these New Ordinary Shares, 12,000,504 have been placed subject only to admission to trading on AIM (the "First Placing Shares"), with the balance of 5,559,496 New Ordinary Shares (the "Second Placing Shares") being placed subject to shareholder approval at a general meeting of the Company to be convened shortly (the "GM") and subject to admission to trading on AIM.

Resolutions will be proposed at the GM to grant the Directors authority to allot the Second Placing Shares, to disapply pre-emption rights in relation to the issue of the Second Placing Shares and to refresh the Company's allotment and pre-emption authorities up until the next Annual General Meeting (the "Resolutions"). The placing of the First Placing Shares will raise gross proceeds of approximately £1.2 million and the placing of the Second Placing Shares will raise approximately an additional £0.556 million for the Company. The First Placing Shares and Second Placing Shares together represent 9.93% of the existing share capital of the Company and will represent 9.03% of the enlarged share capital of the Company.

Application has been made to AIM for the First Placing Shares to be admitted to trading, which is expected to commence on or around 5 July 2012. The First Placing Shares will rank pari passu with existing ordinary shares in the Company. 

Subject to the passing of the Resolutions, application will be made for the Second Placing Shares to be admitted to trading on AIM, which is expected to occur shortly after the General Meeting. The Second Placing Shares will, if they are admitted, rank pari passu with existing ordinary shares in the Company.

Total Voting Rights

Assuming no further exercise of outstanding options or warrants, following admission to trading of the First Placing Shares, the Company will have an issued share capital of 188,855,009 Ordinary Shares of 1 penny each. Following the admission to trading of all of the New Ordinary Shares, the Company will have an issued share capital of 194,414,505 Ordinary Shares of 1 pence each.

General Meeting

The Company will shortly post to Shareholders a circular (the "Circular") and notice convening a general meeting of the Company (the "General Meeting"). A Form of Proxy for use at the General Meeting will be included with the Circular. 

At the General Meeting, Shareholders will be asked to consider and, if thought fit, pass certain resolutions to enable the Company to effect the issue of the Second Placing Shares. The Board considers that the Second Placing is in the best interests of the Company and its Shareholders as a whole, and intends to recommend that Shareholders vote in favour of the resolutions at the General Meeting.

For further information, please contact:

Notes to Editors

About Transense Technologies

Based in Oxfordshire, UK, Transense has developed patent-protected sensor systems for use in diverse high growth markets. Developed in conjunction with partners including McLaren Electronic Systems and General Motors, Transense's Surface Acoustic Wave (SAW), wireless, battery-less, sensor systems offer significant advantages over legacy wireless sensor systems. Via two wholly owned divisions, IntelliSAW and Translogik, Transense is targeting the high growth global electrical Smart Grid applications market and the transport industry respectively.

Transense's sensors are also being used in the wind turbine monitoring industry. The Company is part of a consortium of nine companies ("IntelWind") that has begun development on a major EU funded project to improve the efficiency of wind turbines.

Transense's shares are admitted to trading on AIM, a market operated by the London Stock Exchange (AIM: TRT).

www.transense.co.uk