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25 July 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
Issue of Equity to raise £1million and issue of Warrants
Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide, is pleased to announce a placing ('Placing') of 10 million new ordinary shares of 10p each ('Ordinary Shares') at 10p per Ordinary Share to raise £1million before expenses together with the issue of warrants.
Placing
The Company has conditionally raised £1million before expenses by means of a Placing undertaken on behalf of the Company by SVS Securities Plc ("SVS"). The Placing will result in the issue of 10 million new Ordinary shares ('Placing Shares') at a price of 10p per share representing, in aggregate, approximately 6.9% of the issued share capital of the Company as enlarged by the issue of the Placing Shares.
The primary purpose for the funds is to part fund the manufacture of the equipment to be shipped and installed under the $3.48m USD contract for container screening solutions to two ports in Asia, which the Company announced in April 2019. The Company is now in possession of non-transferrable Letters of Credit and with this funding now in place we can get this lucrative project underway immediately, rather than wait for trade finance around the LCs to be finalised. The Company will receive 77% of the contract value on shipping of the goods later this year with the balance payable on commissioning.
A small proportion, less than 10%, of the funds raised will be used for working capital on the Tema Port, Ghana project and for set up costs for our Joint Venture, Westminster Arabia, which we initially announced in June 2019. Both exciting project developments.
The Placing is conditional upon admission of the Placing Shares to trading on AIM becoming effective in accordance with the AIM Rules ("Admission") and the placing agreement between the Company and SVS becoming unconditional and not being terminated in accordance with its terms prior to Admission.
Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares on AIM will commence at 8:00am on or around 1 August 2019.
Warrants
The Company has also issued 1 warrant for every Placing Share, valid for 2 years from the date of issue, exercisable at 12.5p per Ordinary Share.
Total Voting Rights
In accordance with the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ('DTRs'), the Company hereby announces that following Admission of the Placing Shares, it will have 145,027,511 Ordinary Shares in issue, none of which are held in treasury. Therefore, following Admission the total number of voting rights in the Company is 145,027,511.
The above figure of 145,027,511 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the DTRs.
For further information please contact:
Westminster Group Plc | Media enquiries via Walbrook PR |
Rt. Hon. Sir Tony Baldry - Chairman | |
Peter Fowler - Chief Executive Officer | |
Mark Hughes - Chief Financial Officer | |
S. P. Angel Corporate Finance LLP (NOMAD & Joint Broker) | |
Stuart Gledhill | 020 3470 0470 |
Caroline Rowe | |
SVS Securities PLC (Joint Broker)
| |
Elliot Hance
| 020 3700 0100 |
Walbrook (Investor Relations) | |
Tom Cooper | 020 7933 8780 |
Paul Vann | 0797 122 1972 |
tom.cooper@walbrookpr.com |
Notes:
Westminster Group plc is a specialist security and services group operating worldwide via an extensive international network of agents and offices in over 50 countries.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long-term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manpower, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue-chip commercial organisations.