Byotrol PLC Proposed Fundraising (9658M)

TIDMBYOT

RNS Number : 9658M

Byotrol PLC

03 August 2017

THIS ANNOUNCEMENT (INCLUDING THE APPIX) AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL ("RESTRICTED JURISDICTION"). THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. THE SECURITIES DISCUSSED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMED (THE "US SECURITIES ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT. NO PUBLIC OFFERING OF THE SECURITIES DISCUSSED HEREIN IS BEING MADE IN THE UNITED STATES AND THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFERING OF SECURITIES FOR SALE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SINGAPORE OR THE REPUBLIC OF SOUTH AFRICA.

FURTHER, THIS ANNOUNCEMENT IS MADE FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR SOLICITATION TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE SHARES IN BYOTROL PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

3 August 2017

Byotrol plc

Proposed Placing of up to 103,787,000 New Ordinary Shares at 4 pence per share

Proposed Subscription of up to 3,000,000 New Ordinary Shares at 4 pence per share

and Open Offer of up to 26,805,156 New Ordinary Shares at 4 pence per share

Key Points

-- Placing and Subscription to raise up to GBP4.3 million before expenses at a price of 4 pence per share

-- Placing being conducted through an accelerated book build process which will open with immediate effect following this announcement

-- Open Offer to Qualifying Shareholders (with excess application facility) to raise up to GBP1.1 million at a price of 4 pence per share

-- Proceeds of Fundraise mainly to be used to accelerate the Group's growth plans in three core markets

-- Issue Price represents a discount of approximately 14 per cent. to the closing mid-market price of Byotrol's existing ordinary shares of 4.625 pence on 2 August 2017

-- Placing and Subscription Shares, assuming full take-up, will represent approximately 39.8 per cent of the Company's existing issued share capital

-- Open Offer Shares, assuming full take-up, will represent approximately 10 per cent. of the Company's existing issued share capital

   --     The Fundraise is conditional, inter alia, upon Admission 
   --     Further details of the Placing are set out in the appendix to this announcement 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR").

Contacts:

Byotrol plc 01925 742 000

David Traynor - Chief Executive

finnCap Ltd 020 7220 0500 (Nominated Adviser & Broker)

Geoff Nash/Carl Holmes/James Thompson - Corporate Finance

Important notice

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company.

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change.

This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. This announcement is not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada, the Republic of South Africa, Japan or any jurisdiction where to do so might constitute a violation of local securities laws or regulations (a "Prohibited Jurisdiction"). This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

finnCap Ltd ("finnCap") is authorised and regulated by the Financial Conduct Authority in the United Kingdom. finnCap is acting solely as nominated adviser, broker and bookrunner exclusively for the Company and no one else in connection with the contents of this announcement and will not regard any other person (whether or not a recipient of this announcement) as its client in relation to the contents of this announcement nor will it be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement. Apart from the responsibilities and liabilities, if any, which may be imposed on finnCap by FSMA or the regulatory regime established thereunder, finnCap accepts no responsibility whatsoever, and makes no representation or warranty, express or implied, for the contents of this announcement including its accuracy, completeness or verification or for any other statement made or purported to be made by it, or on behalf of it, the Company or any other person, in connection with the Company and the contents of this announcement, whether as to the past or the future. finnCap accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of the contents of this announcement or any such statement.

In connection with the Placing, finnCap and its respective affiliates, acting as investors for their own accounts, may subscribe for or purchase ordinary shares in the Company ("Ordinary Shares") and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own accounts in such Ordinary Shares and other securities of the Company or related investments in connection with the Placing or otherwise. Accordingly, references to the Ordinary Shares being offered, subscribed, acquired, placed or otherwise dealt in should be read as including any offer to, or subscription, acquisition, placing or dealing by finnCap and any of its respective affiliates acting as investors for their own accounts. In addition, finnCap or its respective affiliates may enter into financing arrangements and swaps in connection with which it or its affiliates may from time to time acquire, hold or dispose of Ordinary Shares. finnCap has no intention to disclose the extent of any such investment or transactions otherwise than in accordance with any legal or regulatory obligations to do so.

Forward-looking Statements

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Company's business strategy, plans and objectives of management for future operations, or any statements proceeded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or similar expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. No undue reliance should be placed upon forward-looking statements. These forward looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by applicable law or the AIM Rules for Companies.

Byotrol plc

Proposed Placing of up to 103,787,000 New Ordinary Shares at 4 pence per share

Proposed Subscription of up to 3,000,000 New Ordinary Shares at 4 pence per share

and Open Offer of up to 26,805,156 New Ordinary Shares at 4 pence per share

   1.     Introduction 

The Company today announces a conditional Placing by finnCap of up to 103,787,000 new Ordinary Shares at 4p per share and a conditional Subscription of up to 3,000,000 new Ordinary Shares at 4p per share to raise GBP4.3 million (before expenses) and an associated Open Offer to raise up to GBP1.1 million. The net proceeds of the Fundraising, amounting to between GBP4.0 million and GBP5.1 million, will be mainly used to invest in sales and marketing resource to drive sales in the EU and in the US following the recent EPA approval.

The Placing, Subscription and Open Offer are conditional on, inter alia, the passing of the Resolutions at the General Meeting and Admission. It is expected that, subject to passing the Resolutions, the New Ordinary Shares will be admitted to trading on AIM on 5 September 2017.

The Issue Price represents a discount of approximately 14 per cent. to the closing mid-market price of 4.625 pence per Ordinary Share on 2 August 2017 (being the last practical date prior to the announcement of the Fundraising).

   2.     Background to and Reasons for the Placing and Open Offer 

Byotrol has today reported its first EBITDA positive year (before share-based payments and R&D tax credits) alongside its preliminary results. This was achieved through rationalising product lines, focused development spend to advance the Company's technologies, efficiencies in the supply chain and increased sales, particularly via development contracts. The Company will continue to focus on improving efficiencies in the business, but the Board believes that Byotrol is also now well placed to drive significant growth from three new technology platforms: surface care in the US, surface care in Europe (and the rest of the world) and alcohol-free hand sanitisers.

On 13 June 2017, Byotrol received US EPA registration for its proprietary germ-kill surface sanitiser which allows the Company to claim high performance cleaning and viricidal action along with such claims as "Anti-bacterial for 24 hours" and "Eliminates >99.9% of viruses". The Directors are not aware of any other cleaning or sanitising products that can make 24 hour germ kill claims to US consumer markets and as such believe that Byotrol has a unique opportunity in the US, which the Directors estimate as a $1bn addressable market. Depending on the structure of any commercial deal that is agreed, the Directors believe that the products could have on shelf presence in the US in H1 2018.

Outside of the US, Byotrol continues work alongside Solvay SA ("Solvay") to develop and commercialise long-lasting biocidal products to market in Europe and the rest of the world in the consumer, human and animal health and industrial markets. The Company has patented one such formulation for the EU consumer market and has launched it under the Actizone(R) trading name that it intends will be included in third-party branded surface care products targeted at EU consumers. The Directors estimate this market to be worth in the hundreds of EU millions.

Byotrol has also recently patented a new formulation of alcohol-free hand sanitisers which the Directors expect to be approved by EU regulators as the EU Biocidal Regulations come into force over the next few years. This new product is targeted at alcohol-intolerant or alcohol-sceptical users in the healthcare, business workplace and consumer sectors. The Company has already signed deals with blue-chip customers in the UK, including now supplying directly into the UK NHS, in Japan and Malaysia and is also now marketing its product (via an agent) under the American Red Cross brand in the US.

The Directors believe the biocides sector as a whole is growing and that business and consumer awareness of microbial risks is increasing. At the same time, the Directors believe that increasing regulation is (1) decreasing the current number of biocides available in the market and (2) creating high barriers to entry for new product due to the complex, time-consuming and expensive processes required by the EU and EPA in the US. As such the sector is undergoing an evolution both in B2B and B2C which the Directors believe, with additional funding, Byotrol can capitalise upon to drive substantial growth across its business activities.

The funds received from the Fundraise will allow the Directors to invest in sales and marketing resource in the US, along with resource for European and rest of world sales. In addition, the funds will allow the Board to strengthen Byotrol's balance sheet, so assisting in negotiations with suppliers, customers and potential licensees of its technology. The Company also wishes to redeem the GBP380,000 of outstanding convertible loan notes issued in December 2013 ("CLNs"). Holders of CLNs may call for the conversion of their CLNs into shares. Those directors currently holding CLNs have indicated they will convert their CLNs into shares. The CLNs have a coupon of 10 per cent.

   3.     Current Trading and Prospects 

The Company has today released its Preliminary Results for the year ended 31st March 2017 and is continuing to make good progress. The Directors believe that Byotrol's financial performance in this current financial year will follow a similar profile to FYE 2017, with progress in the first half of the year and then accelerating in H2.

This year the Company is expecting that the majority of the growth will arise from healthcare and consumer sales (including technical development agreements).

   4.     Details of the Placing and Subscription 

The Company is proposing to raise, in aggregate, GBP4.3 million (before commissions and expenses) by means of the Placing and Subscription. The Placing Shares and Subscription Shares will represent approximately 39.8 per cent. of the Existing Ordinary Shares. The aggregate net proceeds after costs related to the Placing and Subscription are expected to be GBP4.0 million. The Placing and Subscription Shares shall, when issued, rank in full for any dividend or other distribution declared, made or paid after Admission and otherwise equally in all respects with the Existing Ordinary Shares.

Application will be made to London Stock Exchange for the Placing and Subscription Shares to be admitted to trading on AIM and it is anticipated that trading in the Placing and Subscription Shares will commence on AIM at 8.00 a.m. on 5 September 2017.

The Placing and Subscription are conditional upon, amongst other things:

(i) the Placing Agreement becoming unconditional in all respects (save for Admission) and not having been terminated;

   (ii)    the Resolutions being passed at the General Meeting; and 

(iii) admission of the Placing and Subscription Shares to trading on AIM becoming effective by not later than 8.00 a.m. on 5 September 2017 or such later date (being not later than 8.00 a.m. on 15 September 2017) as the Company and finnCap may agree.

Pursuant to the terms of the Placing Agreement, finnCap as agent for the Company, has agreed to use its reasonable endeavours to procure placees for the Placing Shares at the Issue Price; the Placing Agreement contains warranties from the Company in favour of finnCap in relation to, inter alia, the accuracy of the information contained in the documents relating to the Placing and certain other matters relating to the Company and its business. In addition, the Company has agreed to indemnify finnCap in relation to certain liabilities that it may incur in respect of the Placing.

finnCap may terminate the Placing Agreement in certain circumstances (including for breach of warranty at any time prior to Admission, if such breach is reasonably considered by finnCap to be material in the context of the Placing) and in the event of a force majeure event or material adverse change occurring at any time prior to Admission.

   5.     Details of the Open Offer 

The Company considers it important that Qualifying Shareholders have an opportunity (where it is practicable for them to do so) to participate at the same price per Ordinary Share as the Placing and Subscription and accordingly the Company is making the Open Offer to Qualifying Shareholders. The Company is proposing to raise a maximum of GBP1.1 million (before expenses) (assuming full take up of the Open Offer but being less than the EUR5 million maximum amount permitted without requiring the publication by the Company of a prospectus under the Prospectus Rules) through the issue of up to 26,805,156 Open Offer Shares.

The Open Offer Shares are available to Qualifying Shareholders pursuant to the Open Offer at the Issue Price of 4 pence per Open Offer Share, payable in full on acceptance. Any Open Offer Shares not applied for by Qualifying Shareholders will be available to Qualifying Shareholders under the Excess Application Facility.

Qualifying Shareholders may apply for Open Offer Shares under the Open Offer at the Issue Price on the following basis:

1 Open Offer Share for every 10 Existing Ordinary Shares

held by the Qualifying Shareholder on the Record Date

Entitlements of Qualifying Shareholders to apply for Open Offer Shares will be rounded down to the nearest whole number of Open Offer Shares. Fractional entitlements which would otherwise arise will not be issued to the Qualifying Shareholders but will be aggregated and made available under the Excess Application Facility. The Excess Application Facility enables Qualifying Shareholders to apply for Excess Shares in excess of their Open Offer Entitlement. Not all Shareholders will be Qualifying Shareholders. Shareholders who are located in, or are citizens of, or have a registered office in the Restricted Jurisdictions will not qualify to participate in the Open Offer.

Valid applications by Qualifying Shareholders will be satisfied in full up to their Open Offer Entitlements as shown on the Application Form. Applicants can apply for less or more than their entitlements under the Open Offer but the Company cannot guarantee that any application for Excess Shares under the Excess Application Facility will be satisfied as this will depend in part on the extent to which other Qualifying Shareholders apply for less than or more than their own Open Offer Entitlements. The Company may satisfy valid applications for Excess Shares of applicants in whole or in part but reserves the right not to satisfy any excess above any Open Offer Entitlement. The Board may scale back applications made in excess of Open Offer Entitlements on such basis as it reasonably considers to be appropriate.

Application has been made for the Open Offer Entitlements to be admitted to CREST. It is expected that such Open Offer Entitlements will be credited to CREST on 4 August 2017. The Open Offer Entitlements will be enabled for settlement in CREST until 11.00 a.m. on 30 August 2017. Applications through the CREST system may only be made by the Qualifying CREST Shareholder originally entitled or by a person entitled by virtue of bona fide market claims. The Open Offer Shares must be paid in full on application. The latest time and date for receipt of completed Application Forms or CREST applications and payment in respect of the Open Offer is 11.00 a.m. on 30 August 2017.

Qualifying Shareholders should note that the Open Offer is not a rights issue and therefore the Open Offer Shares which are not applied for by Qualifying Shareholders will not be sold in the market for the benefit of the Qualifying Shareholders who do not apply under the Open Offer. The Application Form is not a document of title and cannot be traded or otherwise transferred.

The Open Offer is conditional on the Placing becoming unconditional in all respects and not being terminated before Admission (as the case may be). Accordingly, if the conditions to the Placing are not satisfied or waived (where capable of waiver), the Open Offer will not proceed and the Open Offer Shares will not be issued and all monies received by the Receiving Agent will be returned to the applicants (at the applicant's risk and without interest) as soon as possible, but within 14 days thereafter. Any Open Offer Entitlements admitted to CREST will thereafter be disabled.

The Open Offer Shares will be issued free of all liens, charges and encumbrances and will, when issued and fully paid, rank pari passu in all respects with the New Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of their issue.

   6.     Effect of the Fundraise 

Upon Admission, and assuming full take up of the Open Offer Entitlements, the Enlarged Issued Share Capital is expected to be 401,643,721 Ordinary Shares. On this basis, the New Ordinary Shares will represent approximately 33.3 per cent. of the Company's Enlarged Issued Share Capital.

Following the issue of the New Ordinary Shares pursuant to the Fundraising, assuming full take up of the Open Offer Entitlements, Qualifying Shareholders who do not take up any of their Open Offer Entitlements nor participate in the Fundraise will suffer a dilution of approximately 49.8 per cent. to their interests in the Company. If a Qualifying Shareholder takes up his Open Offer Entitlement in full, and does not participate in the Placing and Subscription, he will suffer a dilution of approximately 39.8 per cent. to his interest in the Company.

   7.     General Meeting 

At the end of the circular you will find a notice convening the General Meeting to be held at the offices of finnCap, 60 New Broad Street, London EC2M 1JJ on 4 September 2017 at 11.00 a.m.. The notice contains the text of the Resolutions that are to be proposed at the General Meeting to authorise the Directors to allot the New Ordinary Shares under the Placing and Subscription and to disapply Shareholders' pre-emption rights under the Companies Act 2006 in respect of the Placing and Subscription Shares. The Fundraise is conditional on the passing of the Resolutions.

The Resolutions, if passed, will allow the New Ordinary Shares to be issued at a price of 4 pence each (representing a 14 per cent. discount to the closing middle market price for an Ordinary Share of 4.625 pence for the business day immediately prior to the date of this announcement) without them first being offered to Shareholders generally in accordance with their statutory pre-emption rights. The Directors have concluded that proceeding with the Placing and Subscription, alongside the Open Offer, is the most suitable option available to the Company for raising additional funds through the issue of Ordinary Shares and that issuing the Placing and Subscription Shares at such a discount is fair and reasonable so far as all existing Shareholders are concerned. The Issue Price has been set by the Directors following their assessment of market conditions and following discussions with a number of institutional investors.

   8.     Recommendation 

The Directors consider the Resolutions to be proposed at the General Meeting to be in the best interests of the Company and the Shareholders as a whole. Consequently, the Directors unanimously recommend that you vote in favour of the Resolutions to be proposed at the General Meeting, as they intend to do in respect of the 8,225,240 Ordinary Shares held, directly or indirectly, by them representing approximately 3.1 per cent. of the total voting rights of the Company.

APPIX

TERMS AND CONDITIONS OF THE PLACING

For Invited Placees only - Important Information

   1.                Introduction 

THIS ANNOUNCEMENT, INCLUDING THE APPIX AND THE TERMS AND CONDITIONS CONTAINED HEREIN, (TOGETHER, THIS "ANNOUNCEMENT") IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND JAPAN, NEW ZEALAND OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. PERSONS INTO WHOSE POSSESSION THIS ANNOUNCEMENT (INCLUDING THE APPIX) COMES ARE REQUIRED BY THE COMPANY AND FINNCAP TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS.

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS DIRECTED ONLY AT: (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA WHO ARE QUALIFIED INVESTORS WITHIN THE MEANING OF ARTICLE 2(1)(E) OF THE PROSPECTUS DIRECTIVE ("QUALIFIED INVESTORS"); AND (B) PERSONS WHO (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS AND FALL WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"); OR (II) ARE PERSONS FALLING WITHIN ARTICLE 49(2)(A) TO (D) ("HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC") OF THE ORDER; OR (C) ARE PERSONS WHO ARE OTHERWISE LAWFULLY PERMITTED TO RECEIVE IT WITHOUT REQUIRING THE COMPANY TO ISSUE A PROSPECTUS APPROVED BY COMPETENT REGULATORS (ALL SUCH PERSONS REFERRED TO IN (A), (B) AND (C), TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS ANNOUNCEMENT AND THE INFORMATION IN IT MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. PERSONS DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY THEMSELVES THAT IT IS LAWFUL TO DO SO. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS APPIX AND THE TERMS AND CONDITIONS SET OUT HEREIN RELATE IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. THIS APPIX DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.

THE CONTENT OF THIS ANNOUNCEMENT HAS NOT BEEN APPROVED BY AN AUTHORISED PERSON WITHIN THE MEANING OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (AS AMED). RELIANCE ON THIS ANNOUNCEMENT FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE AN INDIVIDUAL TO A SIGNIFICANT RISK OF LOSING ALL OF THE PROPERTY OR OTHER ASSETS INVESTED.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF A SUBSCRIPTION FOR OR PURCHASE OF THE PLACING SHARES.

THE PLACING SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMED (THE "SECURITIES ACT") OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OR JURISDICTION OF THE UNITED STATES, AND MAY NOT BE OFFERED, SOLD OR TRANSFERRED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. THE PLACING SHARES ARE BEING OFFERED AND SOLD ONLY OUTSIDE THE UNITED STATES IN "OFFSHORE TRANSACTIONS" WITHIN THE MEANING OF, AND IN ACCORDANCE WITH, REGULATION S UNDER THE SECURITIES ACT AND OTHERWISE IN ACCORDANCE WITH APPLICABLE LAWS. NO PUBLIC OFFERING OF THE PLACING SHARES IS BEING MADE IN THE UNITED STATES OR ELSEWHERE.

This Announcement or any part of it does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction in which the same would be unlawful. No public offering of the Placing Shares is being made in any such jurisdiction.

The Placing Shares have not been approved or disapproved by the US Securities and Exchange Commission, any state securities commission or other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of the Placing or the accuracy or adequacy of this Announcement. Any representation to the contrary is a criminal offence in the United States. The relevant clearances have not been, nor will they be, obtained from the securities commission of any province or territory of Canada, no prospectus has been lodged with, or registered by, the Australian Securities and Investments Commission or the Japanese Ministry of Finance; the relevant clearances have not been, and will not be, obtained for the South Africa Reserve Bank or any other applicable body in the Republic of South Africa in relation to the Placing Shares and the Placing Shares have not been, nor will they be, registered under or offering in compliance with the securities laws of any state, province or territory of Australia, Canada, Japan or the Republic of South Africa. Accordingly, the Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into Australia, Canada, Japan or the Republic of South Africa or any other jurisdiction outside the United Kingdom.

Persons (including, without limitation, nominees and trustees) who have a contractual right or other legal obligations to forward a copy of this Announcement should seek appropriate advice before taking any action.

By participating in the Bookbuild and the Placing, each Placee will be deemed to have read and understood this Announcement in its entirety to be participating, making an offer and acquiring Placing Shares on the terms and conditions contained herein and to be providing the representations, warranties, indemnities, acknowledgements and undertakings contained in this Appendix.

Members of the public are not eligible to take part in the Placing.

In this Appendix:

(a) "you" or "Placee" means any person who becomes committed through the Bookbuild to subscribe for Placing Shares; and

(b) terms defined elsewhere in this announcement have the same meanings, unless the context requires otherwise.

Various dates referred to in this Announcement are stated on the basis of the expected timetable for the Placing. It is possible that some of these dates may be changed. The expected date for Admission is 5 September 2017 and, in any event, the latest date for Admission is 15 September 2017 (the "Long Stop Date").

   2.                Details of the Placing 

finnCap has today entered into the Placing Agreement pursuant to which, subject to the conditions set out in such agreement, they have agreed to use their reasonable endeavours to procure subscribers for the Placing Shares at the Placing Price with certain institutional and other investors.

No element of the Placing is underwritten.

The Placing of the Placing Shares is conditional upon the Placing Agreement becoming unconditional in all respects.

The Shares will, when issued, be subject to the articles of association of the Company, be credited as fully paid and rank pari passu in all respects with the Existing Ordinary Shares immediately following the passing of the Resolutions at the General Meeting, including the right to receive dividends and other distributions declared or made following Admission.

Application will be made to the London Stock Exchange for admission of the Placing Shares to trading on AIM. Admission is conditional upon, amongst other things, the conditions in the Placing Agreement being satisfied and the Placing Agreement not having been terminated in accordance with its terms. It is expected that Admission will become effective at 8.00 a.m. on 5 September 2017 and that dealings in the Placing Shares will commence at that time.

   3.                Bookbuild 

finnCap is proceeding with a share placing bookbuild process (the "Bookbuild") for the purpose of assessing demand from institutional and other investors for subscribing for Placing Shares at the Placing Price and the Company then issuing those shares under the Placing to raise up to GBP4.2 million for the Company before expenses. finnCap is acting as the Company's agent in respect of the Bookbuild and the Placing.

The Bookbuild is expected to close at or before 6.00 p.m. today. The Company will then release an announcement through the London Stock Exchange's Regulatory Information Service confirming the number of Placing Shares to be issued and the amount to be raised under the Placing. finnCap will determine the basis for allocating Placing Shares to bids submitted to it in the Bookbuild and may at its discretion (i) accept bids, either in whole or in part, (ii) accept bids that are received after the Bookbuild has closed, and/or (iii) scale down all or any bids on such basis as it considers appropriate. finnCap may carry out the Placing by any alternative method to the Bookbuild as it chooses. Neither finnCap nor any other finnCap Person will have any liability to Placees (subject to applicable law) or to anyone else other than the Company in respect of the Placing or in respect of its conduct of the Bookbuild or of any alternative method that it may adopt for carrying out the Placing.

The Company and finnCap may, by agreement with each other, increase the amount to be raised through the Placing. The Company also reserves the right to allow officers of the Company and/or Group employees to subscribe for some of the Placing Shares at the Placing Price, with finnCap's agreement, on substantially the same or similar terms as apply to those Relevant Persons subscribing for shares under the Placing.

   4.                Participation and settlement 

Participation in the Bookbuild is only available to persons who are invited to participate in it by finnCap.

If you are invited to participate in the Bookbuild and wish to do so, you should communicate your bid by telephone to your usual broking contact at finnCap. Each bid should state the number of Placing Shares which you wish to subscribe for at the Placing Price. If your bid is successful, in whole or in part, your allocation will be confirmed orally following the close of the Bookbuild. finnCap's oral confirmation of your allocation will constitute a legally binding commitment on your part to subscribe for the number of Placing Shares allocated to you at the Placing Price on the terms and subject to the conditions set out or referred to in this Appendix and subject to the Company's constitution.

A person who submits a bid in the Bookbuild will not be able, without finnCap's agreement, to vary or revoke the bid before the close of the Bookbuild. Such a person will not be able, after the close of the Bookbuild, to vary or revoke a submitted bid in any circumstances.

If you are allocated Placing Shares in the Bookbuild, you will be sent a written confirmation stating (i) the number of Placing Shares allocated to you, (ii) the aggregate amount you will be required to pay for those Placing Shares at the Placing Price, (iii) relevant settlement information, and (iv) settlement instructions. Settlement instructions will accompany each written confirmation and, on receipt, should be confirmed back to finnCap by the date and time stated in it. Settlement of transactions in the Placing Shares will take place within the CREST system, subject to certain exceptions, on a "delivery versus payment" (or "DVP") basis. finnCap reserves the right to require settlement for and/or delivery to any Placee of any Placing Shares to be made by such other means as it may deem appropriate if delivery or settlement is not possible or practicable within the CREST system within the timetable set out in this announcement. If your Placing Shares are to be delivered to a custodian or settlement agent, you should ensure that the written confirmation is copied and delivered promptly to the appropriate person within that organisation.

Each Placee's obligations to subscribe and pay for Placing Shares under the Placing will be owed to each of the Company and finnCap. No commissions will be paid to or by Placees in respect of their agreement to subscribe for any Placing Shares.

Placees' commitments in respect of Placing Shares will be made solely on the basis of the information contained in this Announcement and on the terms contained in it. No admission document for the purposes of the AIM Rules nor any prospectus is required to be published, or has been or will be published, in relation to the Placing or the Placing Shares.

   5.                Placing conditions 

Under the terms of the Placing Agreement finnCap has agreed to use its reasonable endeavours as the Company's agent to procure subscribers for Placing Shares at the Placing Price.

The Placing is conditional on, inter alia: (i) finnCap's obligations under the Placing Agreement not being terminated in accordance with its terms, (ii) the passing of the Resolutions at the General Meeting that is to be proposed in the notice of that meeting that is to be included in the Company's circular to its shareholders concerning the Placing and the Open Offer, (iii) Admission taking place not later than 8.00 a.m. on 5 September 2017, and (iv) finnCap's obligations under the Placing Agreement becoming unconditional in all other respects. finnCap may extend the time and/or date for the fulfilment of any of the conditions in the Placing Agreement to a time no later than 5.00 p.m. on the Long Stop Date. If any such condition is not fulfilled (and, if capable of waiver under the Placing Agreement, is not waived by finnCap) by the relevant time, the Placing will lapse and your rights and obligations in respect of the Placing will cease and terminate at such time.

finnCap may terminate its obligations under the Placing Agreement prior to Admission in certain circumstances including, among other things, following a material breach of the Placing Agreement by the Company. The exercise of any right of termination pursuant to the Placing Agreement, any waiver of any condition in the Placing Agreement and any decision by finnCap whether or not to extend the time for satisfaction of any condition in the Placing Agreement are within finnCap's absolute discretion (as is the exercise of any right or power of finnCap under the terms of this Appendix). finnCap will have no liability to you or to anyone else in respect of any such termination, waiver or extension or any decision to exercise or not to exercise any such right of termination, waiver or extension.

If the Placing Agreement is terminated in accordance with its terms, the rights and obligations of each Placee in respect of the Placing as described in this Announcement shall cease and terminate at such time and no claim can be made by any Placee in respect thereof.

   6.                Placees' warranties and undertakings 

By communicating a bid to finnCap under the Bookbuild you will irrevocably acknowledge and confirm and warrant and undertake to, and agree with, each of the Company and finnCap, in each case as a fundamental term of your application for Placing Shares of the Company's obligation to allot and/or issue any Placing Shares to you or at your direction, that:

   (a)              you agree to and accept all the terms set out in this Announcement; 

(b) your rights and obligations in respect of the Placing will terminate only in the circumstances referred to in this announcement and will not be subject to rescission or termination by you in any circumstances;

(c) this Announcement, which has been issued by the Company, is within the sole responsibility of the Company;

(d) you have not been, and will not be, given any warranty or representation in relation to the Placing Shares or to the Company or to any other member of its Group in connection with the Placing, other than by the Company as included in this announcement or to the effect that the Company is not now in breach of its obligations under the London Stock Exchange's AIM Rules for Companies or under the EU Market Abuse Regulation (596/2014) to disclose publicly in the correct manner all such information as is then required to be so disclosed by the Company;

(e) you have not relied on any representation or warranty in reaching your decision to subscribe for Placing Shares under the Placing, save as given or made by the Company as referred to in the previous paragraph;

(f) you are not a client of finnCap in relation to the Placing and finnCap is not acting for you in connection with the Placing and will not be responsible to you in respect of the Placing for providing protections afforded to its clients;

(g) you have not been, and will not be, given any warranty or representation by any finnCap Person in relation to any Placing Shares, the Company or any other member of its Group and no finnCap Person will have any liability to you for any information contained in this Announcement, the content of which is exclusively the responsibility of the Company, or which has otherwise been published by the Company or for any decision by you to participate in the Placing based on any such information or on any other information provided to you;

(h) you will pay the full subscription sum at the Placing Price as and when required in respect of all Placing Shares finally allocated to you and will do all things necessary on your part to ensure that payment for such shares and their delivery to you or at your direction is completed in accordance with the standing CREST instructions (or, where applicable, standing certificated settlement instructions) that you have in place with finnCap or puts in place with finnCap;

(i) you are permitted to subscribe for Placing Shares in accordance with the laws of all relevant jurisdictions which apply to you and you have complied, and will fully comply, with all such laws (including where applicable, the Anti-Terrorism, Crime and Security Act 2001, the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007) and have obtained all governmental and other consents (if any) which may be required for the purpose of, or as a consequence of, such subscription, and you will provide promptly to finnCap such evidence, if any, as to the identity or location or legal status of any person which finnCap may request from you (for the purpose of its complying with any such laws or ascertaining the nationality of any person or the jurisdiction(s) to which any person is subject or otherwise) in the form and manner requested by finnCap on the basis that any failure by you to do so may result in the number of Placing Shares that are to be allotted and/or issued to you or at your direction pursuant to the Placing being reduced to such number, or to nil, as finnCap may decide;

(j) you have complied and will comply with all applicable provisions of the FSMA with respect to anything done or to be done by you in relation to any Placing Shares in, from or otherwise involving the United Kingdom and you have not made or communicated or caused to be made or communicated, and you will not make or communicate or cause to be made or communicated, any "financial promotion" in relation to Placing Shares in contravention of section 21 of FSMA;

(k) you are a Relevant Person or a person to whom this Announcement may otherwise be lawfully communicated;

(l) you are acting as principal only in respect of the Placing or, if you are acting for any other person (i) you are duly authorised to do so, (ii) you are and will remain liable to the Company and/or finnCap for the performance of all your obligations as a Placee in respect of the Placing (regardless of the fact that you are acting for another person), (iii) you are both an "authorised person" for the purposes of FSMA and a "qualified investor" as defined at Article 2.1(e)(i) of Directive 2003/71/EC (known as the Prospectus Directive) acting as agent for such person, and (iv) such person is either (1) a FSMA Qualified Investor or (2) a "client" (as defined in section 86(2) of FSMA) of yours that has engaged you to act as his agent on terms which enable you to make decisions concerning the Placing or any other offers of transferable securities on his behalf without reference to him;

(m) nothing has been done or will be done by you in relation to the Placing or to any Placing Shares that has resulted or will result in any person being required to publish a prospectus in relation to the Company or to any Ordinary Shares in accordance with FSMA or the UK Prospectus Rules or in accordance with any other laws applicable in any part of the European Union or the European Economic Area;

(n) you will not treat any Placing Shares in a manner that would contravene any legislation applicable in any territory or jurisdiction and no aspect of your participation in the Placing will contravene any legislation applicable in any territory or jurisdiction or cause the Company or finnCap to contravene any such legislation;

(o) (in this paragraph "US person" and other applicable terms have the meanings that they have in Regulation S made under the Securities Act) (i) none of the Placing Shares have been or will be registered under that Act or under the securities laws of any State of or other jurisdiction within the United States, (ii) subject to certain exceptions, no Placing Shares may be offered or sold, resold, or delivered, directly or indirectly, into or within the United States or to, or for the account or benefit of, any US person, (iii) you are (unless otherwise expressly agreed with finnCap) neither within the United States nor a US person, (iv) you have not offered, sold or delivered and will not offer sell or deliver any of the Placing Shares to persons within the United States, directly or indirectly, (v) neither you, your affiliates, nor any persons acting on your behalf, have engaged or will engage in any directed selling efforts with respect to the Placing Shares, (vi) you will not be subscribing Placing Shares with a view to resale in or into the United States, and (vii) you will not distribute this announcement or any offering material relating to Placing Shares, directly or indirectly, in or into the United States or to any persons resident in the United States;

(p) finnCap may satisfy its obligations to procure Placees by itself agreeing to become a Placee in respect of some or all of the Placing Shares or by nominating any other finnCap Person or any person associated with any finnCap Person to do so or by allowing officers of the Company and/or Group employees to subscribe for Placing Shares under the Placing at the Placing Price;

   (q)              time is of essence as regards your obligations under this Appendix; 

(r) this Appendix and any contract which may be entered into between you and finnCap and/or the Company pursuant to this Appendix or the Placing, and all non-contractual obligations arising between you and finnCap and/or the Company in respect of the Placing, will be governed by and construed in accordance with the laws of England, for which purpose you submit (for yourself and on behalf of any person on whose behalf you are acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute, or matter arising out of or relating to this Appendix or such contract, except that each of the Company and finnCap will have the right to bring enforcement proceedings in respect of any judgement obtained against you in the English courts or in the courts of any other relevant jurisdiction;

(s) each right or remedy of the Company or finnCap provided for in this Appendix is in addition to any other right or remedy which is available to such person and the exercise of any such right or remedy in whole or in part will not preclude the subsequent exercise of any such right or remedy;

(t) any document that is to be sent to you in connection with the Placing will be sent at your risk and may be sent to you at any address provided by you to finnCap;

(u) if you have received any confidential price sensitive information about the Company in advance of the Placing, you have not: (a) dealt in the securities of the Company; (b) encouraged or required another person to deal in the securities of the Company; or (c) disclosed such information to any person, prior to the information being made publicly available;

(v) you irrevocably appoints any duly authorised officer of finnCap as your agent for the purpose of delivering to the Company and/or its registrars any documents on your behalf necessary to enable you to be registered as the holder of any of the Placing Shares for which you agree to subscribe upon the terms of this Announcement; and

(w) by participating in the Placing, each Placee (and any person acting on such Placee's behalf) agrees to indemnify and hold the Company, finnCap and each finnCap Person harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings given by the Placee (and any person acting on such Placee's behalf) in this Appendix or incurred by finnCap, any finnCap Person or the Company arising from the performance of the Placee's obligations as set out in this Announcement, and further agrees that the provisions of this Appendix shall survive after the completion of the Placing.

   7.                Payment default 

Your entitlement to receive any Placing Shares will be conditional on finnCap's receipt of payment in full for such shares by the relevant time to be stated in the written confirmation referred to above, or by such later time and date as finnCap may decide, and otherwise in accordance with that confirmation's terms. finnCap may waive this condition, and will not be liable to you for any decision to waive it or not.

If you fail to make such payment by the required time for any Placing Shares (1) the Company may release itself, and (if it decides to do so) will be released from, all obligations it may have to allot and/or issue any such Placing Shares to you or at your direction which are then unallotted and/or unissued, (2) the Company may exercise all rights of lien, forfeiture and set-off over and in respect of any such Placing Shares to the full extent permitted under its constitution or by law and to the extent that you then have any interest in or rights in respect of any such shares, (3) the Company or, as applicable, finnCap may sell (and each of them is irrevocably authorised by you to do so) all or any of such shares on your behalf and then retain from the proceeds, for the account and benefit of the Company or, where applicable, finnCap (i) any amount up to the total amount due to it as, or in respect of, subscription monies, or as interest on such monies, for any Placing Shares and (ii) any amount required to cover dealing costs and/or commissions necessarily or reasonably incurred by it in respect of such sale and (4) you will remain liable to the Company and to finnCap for the full amount of any losses and of any costs which it may suffer or incur as a result of it (i) not receiving payment in full for such Placing Shares by the required time, and/or (ii) the sale of any such Placing Shares to any other person at whatever price and on whatever terms are actually obtained for such sale by or for it. Interest may be charged in respect of payments not received by finnCap for value by the required time referred to above at the rate of two percentage points above the base rate of National Westminster Bank plc.

   8.                Overseas jurisdictions 

The distribution of this announcement and the offering and/or issue of shares pursuant to the Placing in certain jurisdictions is restricted by law. FSMA Qualified Investors who seek to participate in the Placing must inform themselves about and observe any such restrictions. In particular, this document does not constitute or form part of any offer or invitation, nor a solicitation of any offer or invitation, to subscribe for or acquire or sell or purchase or otherwise deal in Ordinary Shares in the United States, Canada, Japan, the Republic of Ireland, the Republic of South Africa or Australia or in any other jurisdiction in which any such offer, invitation or solicitation is or would be unlawful. New Ordinary Shares have not been and will not be registered under the US Securities Act of 1933, as amended or under the securities laws of any State of or other jurisdiction within the United States, and, subject to certain exceptions, may not be offered or sold, resold or delivered, directly or indirectly, in or into the United States, or to, or for the account or benefit of, any US persons (as defined in Regulation S under that Act). No public offering of New Ordinary Shares is being or will be made in the United States.

DEFINITIONS

In addition to the terms previously defined, the following definitions apply throughout this Announcement unless the context otherwise requires:

 
 "Admission"                  the admission of the Placing 
                               Shares, Subscription Shares 
                               and, to the extent taken up, 
                               Open Offer Shares to trading 
                               on AIM becoming effective in 
                               accordance with the AIM Rules 
 "AIM"                        the market of that name operated 
                               by London Stock Exchange 
 "AIM Rules"                  the AIM Rules for Companies, 
                               published by London Stock Exchange 
 "Application Form"           the application form for use 
                               by Qualifying Non-CREST Shareholders 
                               in connection with the Open 
                               Offer 
 "Board"                      the board of directors of the 
                               Company 
 "Capita Asset Services"      a trading name of Capita Registrars 
                               Limited 
 "the Company" or "Byotrol"   Byotrol plc 
 "CREST"                      the relevant system (as defined 
                               in the Uncertificated Securities 
                               Regulations 2001) for the paperless 
                               settlement of trades and the 
                               holding of uncertificated securities 
                               operated by Euroclear UK & Ireland 
                               Limited 
 "CREST Regulations"          the Uncertificated Securities 
                               Regulations 2001 (S.I. 2001 
                               No. 3755) 
 "Dealing Day"                a day on which the London Stock 
                               Exchange is open for business 
                               in London 
 "Directors"                  the directors of the Company 
 "Enlarged Issued Share       all of the Ordinary Shares in 
  Capital"                     issue on Admission, assuming 
                               full take up of the Open Offer 
                               Shares 
 "Euroclear"                  Euroclear UK & Ireland Limited, 
                               the operator of CREST 
 "Excess Application          the arrangement pursuant to 
  Facility"                    which Qualifying Shareholders 
                               may apply for additional Open 
                               Offer Shares in excess of their 
                               Open Offer Entitlement in accordance 
                               with the terms and conditions 
                               of the Open Offer 
 "Excess CREST Open           in respect of each Qualifying 
  Offer Entitlements"          CREST Shareholder, the entitlement 
                               (in addition to his Open Offer 
                               Entitlement) to apply for Open 
                               Offer Shares pursuant to the 
                               Excess Application Facility, 
                               which is conditional on him 
                               taking up his Open Offer Entitlement 
                               in full and which may be subject 
                               to scaling back in accordance 
                               with the provisions of the circular 
 "Excess Open Offer           an entitlement for each Qualifying 
  Entitlements"                Shareholder to apply to subscribe 
                               for Open Offer Shares in addition 
                               to his Open Offer Entitlement 
                               pursuant to the Excess Application 
                               Facility which is conditional 
                               on him taking up his Open Offer 
                               Entitlement in full and which 
                               may be subject to scaling back 
                               in accordance with the provisions 
                               of the circular 
 "Excess Shares"              Open Offer Shares applied for 
                               by Qualifying Shareholders under 
                               the Excess Application Facility 
 "Ex-entitlement Date"        the date on which the Existing 
                               Ordinary Shares are marked "ex" 
                               for entitlement under the Open 
                               Offer, being 8.00 a.m. on 3 
                               August 2017 

 "Existing Ordinary           the 268,051,565 existing ordinary 
  Shares"                      shares of 0.25 pence each in 
                               in the capital of the Company 
                               in issue at the date of this 
                               announcement, all of which are 
                               admitted to trading on AIM 
 "FCA"                        the Financial Conduct Authority 
 "finnCap"                    finnCap Limited 
 "Form of Proxy"              the form of proxy for use by 
                               Shareholders in connection with 
                               the General Meeting 
 "Fundraising"                together the Placing, the Subscription 
                               and the Open Offer 
 "General Meeting"            the general meeting of the Company 
                               convened for 11.00 a.m. on 2017 
 "Group"                      the group comprising the Company 
                               and its subsidiary undertakings 
 "Issue Price"                4 pence per New Ordinary Share 
 "London Stock Exchange"      London Stock Exchange plc 
 "Money Laundering            the Money Laundering Regulations 
  Regulations"                 2007 
 "New Ordinary Shares"        together, the Placing Shares, 
                               the Subscription Shares and 
                               the Open Offer Shares 
 "Ordinary Shares"            ordinary shares of 0.25 pence 
                               each in the capital of the Company 
 "Open Offer"                 the conditional invitation by 
                               the Company to Qualifying Shareholders 
                               to apply to subscribe for the 
                               Open Offer Shares at the Issue 
                               Price on the terms and subject 
                               to the conditions set out in 
                               the circular and, in the case 
                               of Qualifying Non-CREST Shareholders, 
                               in the Application Form 
 "Open Offer Entitlement"     the individual entitlements 
                               of Qualifying Shareholders to 
                               subscribe for Open Offer Shares 
                               allocated to Qualifying Shareholders 
                               pursuant to the Open Offer 
 "Open Offer Shares"          the up to 26,805,156 new Ordinary 
                               Shares to be issued by the Company 
                               pursuant to the Open Offer 
 "Overseas Shareholders"      Shareholders with a registered 
                               address outside the United Kingdom 
 "Placing"                    the conditional placing of the 
                               Placing Shares pursuant to the 
                               Placing Agreement 
 "Placing Agreement"          the agreement dated 2 August 
                               2017 between the Company and 
                               finnCap relating to the Placing 
 "Placing Shares"             103,787,000 new Ordinary Shares 
 "Prospectus Rules"           the prospectus rules made by 
                               the FCA pursuant to section 
                               73A of FSMA 
 "Qualifying CREST            Qualifying Shareholders holding 
  Shareholders"                Existing Ordinary Shares in 
                               uncertificated form 
 "Qualifying Non-CREST        Qualifying Shareholders holding 
  Shareholders"                Existing Ordinary Shares in 
                               certificated form 
 "Receiving Agent"            Capita Asset Services 
  or "Registrar" 
 "Record Date"                31 July 2017 
 "Regulatory Information      a service approved by the FCA 
  Service"                     for the distribution to the 
                               public of regulatory announcements 
                               and included within the list 
                               maintained on the FCA's website 
 "Resolutions"                the resolutions set out in the 
                               Notice of General Meeting 
 "Restricted Jurisdiction"    the United States, Australia, 
                               Canada, the Republic of Ireland, 
                               the Republic of South Africa, 
                               Japan or any other jurisdiction 
                               where an offer of New Ordinary 
                               Shares would constitute a breach 
                               of local securities laws or 
                               regulations 
 "Shareholders"               holders of Ordinary Shares 
 "Subscription"               the subscription to be made 
                               by certain directors and employees 
                               of the Company, for 3,000,000 
                               New Ordinary Shares at the Issue 
                               Price 
 "Subscription Shares"        the 3,000,000 New Ordinary Shares 
                               to be issued pursuant to the 
                               Subscription 
 "UK"                         the United Kingdom of Great 
                               Britain and Northern Ireland 
 "US" or "United States"      the United States of America, 
                               each State thereof, its territories 
                               and possessions (including the 
                               District of Columbia) and all 
                               other areas subject to its jurisdiction 
 "USE Instruction"            unmatched stock event instruction 
                               which, on its settlement, will 
                               have the effect of crediting 
                               a stock account of the Registrars 
                               under the participant ID and 
                               member account ID specified 
                               in the circular, with a number 
                               of Open Offer Entitlements or 
                               Excess CREST Open Offer Entitlements 
                               corresponding to the number 
                               of Open Offer Shares applied 
                               for 
 "uncertificated" or          an Ordinary Share recorded on 
  "in uncertificated           a company's share register as 
  form"                        being held in uncertificated 
                               form in CREST and title to which, 
                               by virtue of the CREST Regulations, 
                               may be transferred by means 
                               of CREST 
 "GBP", "pounds sterling",    are references to the lawful 
  "pence" or "p"               currency of the United Kingdom 
 "EUR" or "Euros"             are references to a lawful currency 
                               of the European Union 
 

PLACING AND OPEN OFFER STATISTICS

 
 Issue Price                        4 pence 
 Number of Ordinary Shares 
  in issue on the date of 
  this announcement                 268,051,565 
 Number of Placing Shares           103,787,000 
 Number of Subscription 
  Shares                            3,000,000 
 Placing Shares and Subscription    26.8 per cent. 
  Shares as a percentage 
  of the Enlarged Issued 
  Share Capital 
 Gross proceeds of the              GBP4.3 million 
  Placing and Subscription 
 Net proceeds of the Placing        GBP4.0 million 
  and Subscription 
 Open Offer basic entitlement       1 Open Offer Share for 
                                     every 10 Existing 
                                     Ordinary Shares 
 Number of Open Offer Shares        up to 26,805,156 
  (in aggregate)* 
 Open Offer Shares as a             6.7 per cent. 
  percentage of the Enlarged 
  Issued Share Capital* 
 Proceeds of the Open Offer*        GBP1.1 million 
 New Ordinary Shares*               133,592,156 
 Enlarged Issued Share 
  Capital*                          401,643,721 
 New Ordinary Shares as             49.8 per cent. 
  a percentage of the Existing 
  Ordinary Shares* 
 Open Offer Basic Entitlements      GB00BF3ZNB87 
  ISIN 
 Open Offer Excess Entitlements     GB00BF3ZNC94 
  ISIN 
 

EXPECTED TIMETABLE

 
                                                      2017 
Record Date for entitlement              Close of business 
 under the Open Offer                           on 31 July 
Announcement of the Placing                       3 August 
 and Open Offer 
Ex-entitlement date of the Open             8.00 a.m. on 3 
 Offer                                              August 
Publication and Posting of the                    3 August 
 circular, Form of Proxy and, 
 in respect of Qualifying non-CREST 
 Shareholders, the Application 
 Form 
Open Offer Entitlements and                       4 August 
 Excess Open Offer Entitlements 
 credited to stock accounts in 
 CREST of Qualifying CREST Shareholders 
Latest recommended time and                4.30 p.m. on 23 
 date for requested withdrawal                      August 
 of basic Open Offer Entitlements 
 and Excess CREST Open Offer 
 Entitlements from CREST 
Latest time and date for depositing        3.00 p.m. on 24 
 Open Offer Entitlements and                        August 
 Excess CREST Open Offer Entitlements 
 in CREST 
Latest time and date for splitting         3.00 p.m. on 25 
 Application Forms (to satisfy                      August 
 bona fide market claims only) 
Latest time and date for receipt          11.00 a.m. on 30 
 of Application Forms and payment                   August 
 in full under the Open Offer 
 and settlement of relevant CREST 
 instructions (as appropriate) 
Latest time and date for receipt          11.00 a.m. on 30 
 of Forms of Proxy and CREST                        August 
 voting instructions 
General Meeting                                4 September 
Results of the General Meeting                 4 September 
 and the Open Offer announced 

Admission and dealings in the                  5 September 
 New Ordinary Shares expected 
 to commence on AIM 
Where applicable, expected date                5 September 
 for CREST accounts to be credited 
 in respect of New Ordinary Shares 
 in uncertificated form 
Where applicable, expected date               12 September 
 for despatch of definitive share 
 certificates for New Ordinary 
 Shares in certificated form 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

IOEUURRRBNAWRUR

(END) Dow Jones Newswires

August 03, 2017 02:02 ET (06:02 GMT)