Placing

6 Oct 2006 07:01

Elephant Loans & Mortgages PLC06 October 2006 ELEP.L Elephant Loans & Mortgages plc ("Elephant Loans" or the "Company") Further development of IVA business Via Placing of 32,166,666 New Ordinary Shares to raise £965,000 Elelphant Loans, the fast growing packager of loans and mortgages, announcesthat it has placed through its joint broker, Hichens, Harrison & Co. plc,32,166,666 new ordinary shares at 3 pence per share pursuant to the directors'share allotment powers under Section 89 of the Companies Act to raise £965,000before expenses. The net proceeds of the share placing will be applied to the development of theCompany's recently launched IVA business, DebtSmashers Ltd ("DebtSmashers").DebtSmashers offers credit management and IVA services and is led by DavidGammond, who recently relinquished his position as Chairman of the Company inorder to concentrate on establishing the DebtSmashers subsidiary. DebtSmashersis working closely with a major, nationwide accountancy practice, which putscandidates through the IVA process itself. This mirrors the packaging businessmodel established in the Company's existing loans and mortgages business.DebtSmashers is also able to market its services to Elephant Loans applicantswho are declined a loan. Application will be made for the 32,166,666 shares to be allotted under thePlacing to be admitted to AIM; Admission is expected to occur on or shortlyafter 13th October 2006. For further information please contact: David Gammond, Executive Director T: 020 8892 2777Elephant Loans & Mortgages plc Graham Atthill-Beck T: 020 7588 5171Hichens, Harrison & Co plc M: 07779 059 879 Katie Tzouliadis T: 020 7448 1000Biddicks http://www.elephantloans.co.uk About Elephant Loans & Mortgages plc Established in 2001, Elephant Loans & Mortgages is a packager of sub-prime,secured loans and mortgages. The Company has grown considerably since inceptionand its entry into the IVA market represents a natural extension to its businessmodel. Elephant Loans operates through seven regional branches in Twickenham, Ashford(Kent), Peterborough, Cardiff, Manchester, Darlington and Glasglow. It offers apersonal, face-to-face service which promotes strong customer relationships. Itsservices are marketed through strategic affinity partner relationships andregionally through targeted direct mail, regional radio advertising and over theinternet. This information is provided by RNS The company news service from the London Stock Exchange