17 Jan 2011 16:31
17 January 2011
CROSBY ASSET MANAGEMENT INC
("Crosby" or the "Company")
Subscription for Ordinary Shares
The board of Crosby (the "Board") is pleased to announce that, on 14 January 2011 following further demand from professional investors, the Company raised an additional £1,000,000, before expenses, by way of a subscription for 25,000,000 new ordinary shares of US$0.01 each in the share capital of the Company (the "Subscription Shares") at a price of 4.0 pence per share (the "Subscription Price"), to three separate professional investors. The Subscription Price represents a discount of 17.5 per cent. to the closing mid market share price on 13 January 2011.
The proceeds of the subscription will be used to increase cash reserves of the Company as the Board seeks to accelerate the implementation of Crosby's investment strategy.
The Subscription Shares will rank pari passu with the existing ordinary shares of US$0.01 each in the Company (the "Ordinary Shares"). Application has been made for admission of the Subscription Shares to trading on AIM and is expected to occur on Friday 21 January 2011.
Following the issue of the Subscription Shares, there will be 347,342,043 Ordinary Shares in issue. This number 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.
Commenting on the subscription, Robert Owen, Chairman of Crosby, said:
"I am very pleased in the continuing and growing confidence being shown by professional investors in the Company. This further demonstration of support for Crosby from the professional investment community provides the opportunity to increase the free float of the Company and provide the necessary funding to enable us to press forward with delivering on our investing strategy. The Board believes that these further funds, combined with the Company's existing cash resources are expected to be sufficient to provide the Company with the funds required to undertake any required pre-completion work to execute this strategy. Shareholders should rest assured that the Company is committed to delivering news regarding implementation of this strategy in the short-term".
For further details, please contact:
Crosby Asset Management Limited
Trevor Wells / Waseem Shiraz +44 (0) 20 7399 4384
Strand Hanson Limited
Stuart Faulkner / James Spinney +44 (0) 20 7409 3494