Placing & Borrowing Facility

23 Apr 2008 15:58

Crimson Tide PLC23 April 2008 Crimson Tide Plc (the "Company") Issue of Equity and Borrowing Facility 23 April 2008 Crimson Tide Plc is pleased to announce that it has raised approximately£300,000 before expenses by way of a placing of 24,820,513 new Ordinary Sharesof 1p each at 1.21875p (the "Placing Shares") from institutional and otherplacees. These funds will be used to continue the development of the businessand for general working capital purposes. In addition, the Company is also in advanced negotiations to secure a borrowingfacility of up to £600,000 to finance growth in contracted business, with anassociated option to subscribe for 24,615,385 ordinary shares, exercisable at aprice of 1.21875p. Application for admission of the Placing Shares ("Admission") has been madetoday and is conditional on the resolutions to be proposed at the generalmeeting of the Company to be held on 25 April 2008 to approve, inter alia, theincrease of authorised share capital, to grant the directors authority to allotshares and to disapply statutory pre-emption rights, being passed. If theresolutions are approved, Admission is expected to occur on 29 April 2008. Following Admission, the Company will have 315,765,953 Ordinary Shares in issue. The above figure may be used by shareholders as the denominator for thecalculations by which they will determine if they are required to notify theirinterest in, or a change to their interest in, the Company. Barrie Whipp, Chairman, of Crimson Tide, commented: "We are delighted that we have been able to secure this additional funding whichwill allow us to service the healthy pipeline of new business that we have, asCrimson Tide continues to grow. To raise these funds in such a tricky marketplace is testament to the opportunities that lie ahead for this Company as wecontinue to drive it towards profitability and beyond." Enquiries: Crimson Tide Plc 01892 542 444 Barrie Whipp, Executive Chairman W.H. Ireland Limited 0121 265 6330 Tim Cofman/Katy Birkin This information is provided by RNS The company news service from the London Stock Exchange