Last checked at 13 Jul 2012 07:00
13th July 2012
Westminster Group Plc:
Raises £1.4m from New Strategic Investors
Westminster Group Plc ('Westminster' or 'the Group'), the AIM listed supplier of system solutions and products to the security, defence, fire protection and safety markets worldwide, is pleased to announce that it has raised approximately £1.4m net of expenses from new strategic investors.
The new strategic investors have been chosen for their ability to open new markets and significant potential new business for the Group in key areas of Asia.
The £1.4m investment has been made by way of a 5 year unsecured convertible loan note paying an annual coupon of 8% with a conversion price of 27.5p. Settlement will be made in two equal tranches, the first immediately and the second by 30th August 2012. No rights will accrue to the loan holders until settlement is made.
The loan may be redeemed at the Group's discretion after one year. The Group may force conversion at any time in the event that the Group's average volume weighted average share price in the prior 15 dealing days is equal to or exceeds 50p per share.
The new funding will be used to both pay down the £1.0m existing loan note held by Synergy Capital Limited, which will reduce the effective coupon and eliminate its escalating management fee, as well as to provide additional working capital for the Group's growing business.
Commenting on the investment Peter Fowler, Chief Executive of Westminster Group, said:
"We have previously advised shareholders of our expansion strategy of working with strategic investors in key markets who can bring added value as well as investment. In April we announced a strategic new investor focussed on West Africa and I am delighted to now be able to announce we have secured a joint investment from several strategic new investors from Asia.
"These investors are influential within their own markets and their investment in Westminster is both welcomed and a testament to the growing international reputation of the Group. They also provide a host of value added capabilities which can help the Group's expansion in their relevant territories.
"As well as having the benefit of these strategic investors, shareholders will directly benefit from a greatly reduced financing charge. This will reduce future costs by approximately £0.8m between now and 29th June 2014 which was the maturity date of the existing loan note."
For further information please contact:
Westminster Group plc | Tel: 01295 756 300 |
Peter Fowler (Chief Executive) | |
Ian Selby (Chief Financial Officer) | |
Fairfax IS Plc (NOMAD + Broker) | Tel: 020 7598 5368 |
Stuart Gledhill | |
Katy Birkin | |
Winningtons Financial (Financial PR) | Tel: 020 3176 4722 |
Tom Cooper/Paul Vann | 0797 122 1972 |
Notes:
Westminster Group plc is a leader in the supply of system solutions and products to the security, defence, fire protection and safety markets worldwide.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, risk assessments and close protection services. These can range from product only assignments, such as the supply of specialised scanners, to the design and implementation of an integrated system solution such as airport security and border detection and surveillance systems. The majority of its customer base, by value, comprises governments and government agencies, non governmental organisations and blue chip commercial organisations.