Related Party Transaction

29 Jan 2007 07:00

Blue Star Capital plc29 January 2007 29 January 2007 BLUE STAR CAPITAL PLC ("Blue Star" or "the Company") Investment of £150,000 in Izimi On 12 September 2006 Blue Star Capital plc (AIM: BLU), the company created toprovide seed capital for early stage companies, announced an investment inIzimi.com ("Izimi"), the innovative web-based software company that is currentlydeveloping a free desktop software application that enables users toself-publish adverts, media, documents and files on the internet, without theneed for a third party web site or hosting service. Blue Star today announces that it is making an additional £150,000 investment inIzimi, at a valuation of £5.08m. The investment is in the form of a subscriptionfor ordinary shares as part of a total placing of £580,000. Following this newinvestment, Blue Star's aggregate investment in Izimi will be £300,000. Izimi's applications are currently in a beta-testing phase, with an expectedlaunch in February 2007. As such, the company is not yet revenue generative.Since its incorporation on 14 September 2005 Izimi has incurred developmentlosses of £690,896 and, as at 31 December 2006, the company had net assets of£124,204. Nigel Robertson, Blue Star's Chairman, is a shareholder and director of eSeekersLimited, the holding company for Izimi. The proposed investment by Blue Star inIzimi is, accordingly, deemed to be a related party transaction under the AIMRules. Haresh Kanabar, has no connections with Izimi and is therefore independent ofthe transaction. Mr Kanabar considers, having consulted with Teather & GreenwoodLimited, that the terms of the transactions are fair and reasonable insofar asBlue Star's shareholders are concerned. For further information: Blue Star Capital plcHaresh Kanabar, Chief Executive Tel: 020 7297 0010 Teather & GreenwoodMark Dickenson Tel: 020 7426 9000 Holborn Public Relations LimitedDavid Bick Tel: 020 7929 5599 Notes: Izimi is a free desktop software application that enables users to self-publishadverts, media, documents and files on the Internet, without the need for thirdparty web site or hosting service. Izimi has the functionality that enables people to find and socialise withfriends and customers, and to buy, sell, or exchange digital media content (usergenerated content) or professional services. Izimi is both entertainment and ameans to earn money in return for digital content services. Nigel Robertson is a Director of Izimi and also a substantial shareholderholding 30.74% of the equity. Nigel Robertson is also a Director of Blue StarCapital and holds 32.2% of the equity. This information is provided by RNS The company news service from the London Stock Exchange