TSTR.L Regulatory News (TSTR)

18 May 2005 16:37

Canisp PLC18 May 2005 18 May 2005 Canisp plc (the "Company") Issue of Shares The Company announces that, following the departure of Mr Justin Bygott-Webbfrom the Board announced earlier today, it has issued 1,025,641 new OrdinaryShares to Mr Bygott-Webb's pension fund in lieu of outstanding pensioncontributions owed to him. In addition, with a view to further streamlining the Company's cost base, thetwo remaining executive directors, Mike Hirschfield and John Maundrell, haveagreed to reduce their annual salary to £50,000. As consideration for thisreduction, the Company has issued 117,925 new Ordinary Shares to each of them.Furthermore, they have agreed to take 50% of this reduced salary in new OrdinaryShares of the Company. Such shares will be issued on a quarterly basis, thenumber of shares being calculated using the average closing bid-price of theshares over the preceding five dealing days. The increased proportion of telecommunication services the Company is providingas a "switchless reseller" rather than through its own switches and supportinginfrastructure has enabled the Board to make the above changes. Once thehandover period relating to the disposal of the customer base utilising theCompany's own switches has expired, further reductions will be made tooperational overheads. These measures announced today are designed to streamline the Company'sstructure to reflect more closely the resources the Board believes are necessaryto pursue its current objective of combining organic growth for the existingbusiness with identification of further acquisitions within fixed line telephonyservices. An application has been made for the 1,261,491 new Ordinary Shares issued todayto be admitted to AIM, admission is expected to take place on 24 May 2005. Contact: John Bick, Holborn 020 7929 5599 This information is provided by RNS The company news service from the London Stock Exchange