Hardide PLC Fundraise by way of Subscription (7037G)

TIDMHDD

RNS Number : 7037G

Hardide PLC

09 August 2016

Hardide plc

("Hardide" or "the Group" or "the Company")

Fundraise by way of Subscription

Hardide (AIM: HDD), the provider of advanced surface coating technology, is pleased to announce that it has raised GBP0.53m via a subscription for 65,987,500 new ordinary shares of 0.1p each in the capital of the Company ("Ordinary Shares" and "New Ordinary Shares") at a price of 0.8 pence per New Ordinary Share (the "Subscription") by Directors and private investors.

The Board remains committed to its investment program, despite the prevailing macro-economic climate that has affected demand from the Company's core market of oil services. The funds received by the Company pursuant to the Subscription will be used to invest in a range of projects that the Board believes will enhance shareholder value. The Company had GBP1m cash on its balance sheet as at 31(st) March 2016. Current trading remains as set out in the Company's announcement of 6(th) June 2016. All Directors in the Company will be participating in the Subscription (Andrew Boyce through his father, Robert Boyce, on behalf of the Boyce family), about which further information appears below.

The Board is aware of additional interest from institutional and certain private investors ("Interested Parties") and that some of these Interested Parties require specific confirmation from Her Majesty's Revenue & Customs that the funds raised will be eligible for EIS tax relief. The Company therefore intends to obtain such confirmation and then conduct a further fundraising at the same price as the Subscription in order to allow these Interested Parties to subscribe for Ordinary Shares, although there is no obligation for them to do so. The Board does not currently intend for the further fundraise to exceed the maximum pre-emption allowance and therefore, taking account of the Subscription amount this further fundraise is not expected to exceed GBP1.07 million. Shareholders should note that there is no guarantee that a further fundraise will take place.

Application has been made for the New Ordinary Shares issued pursuant to the Subscription to be admitted to trading on AIM and admission is expected to take place on 15(th) August 2016 ("Admission"). The New Ordinary Shares issued pursuant to the Subscription will rank pari passu with existing Ordinary Shares. Following Admission, the issued share capital of the Company will be 1,400,691,804 ordinary shares of 0.1p, each with one voting right. The Company does not hold any ordinary shares in treasury. Therefore the total number of ordinary shares and voting rights in the Company is 1,400,691,804.

The above figure 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 change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Following Admission the following Directors will have the following interests in the Company:

 
 Director               Current     Shares      Resulting Holding 
                        Holding     Acquired 
--------------------  ----------  ----------  -------------------- 
                                                 Number        % 
--------------------  ----------  ----------  ------------  ------ 
 Robert Goddard 
  (Chairman)           4,223,050   2,500,000    6,723,050    0.48% 
--------------------  ----------  ----------  ------------  ------ 
 Jan Ward 
  (Non-Executive 
  Director)*               -       1,250,000    1,250,000    0.09% 
--------------------  ----------  ----------  ------------  ------ 
 Andrew Boyce                          See below** 
  (Non-Executive 
  Director) 
--------------------  -------------------------------------------- 
 Philip Kirkham 
  (Chief Executive)     754,717    1,250,000    2,004,717    0.14% 
--------------------  ----------  ----------  ------------  ------ 
 Yuri Zhuk 
  (Technical 
  Director)            5,031,132   1,250,000    6,281,132    0.45% 
--------------------  ----------  ----------  ------------  ------ 
 Peter Davenport 
  (Finance 
  Director)            3,126,667   1,250,000    4,376,667    0.31% 
--------------------  ----------  ----------  ------------  ------ 
 

* Jan Ward's shares will be held through J Holmes Ltd, a private company jointly owned by Mrs Ward and her husband

**Although Andrew Boyce holds no shares in his own name, he represents family and trust holdings currently totalling 254,046,226 shares. Mr Boyce's father, Robert Boyce, will be taking up 12,500,000 Ordinary Shares in the Subscription on behalf of the Boyce family and the Boyce family will therefore have a resultant holding of 266,546,226 Ordinary Shares representing 19.03% of the Company's issued share capital.

The information in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 
  For further information: 
  Hardide plc                        Tel: [phone] 
   Philip Kirkham, CEO                830 
   Jackie Robinson, Communications 
   Manager 
 
   finnCap                             Tel: [phone] 
   Stuart Andrews / Grant              0500 
   Bergman / James Thompson 
 

Notes to editors:

www.hardide.com

Hardide develops, manufactures and applies advanced technology tungsten-carbide coatings to a wide range of engineering components. Its patented technology is unique in combining, in one material, a mix of toughness and resistance to abrasion, erosion and corrosion; together with the ability to coat accurately interior surfaces and complex geometries. The material is proven to offer dramatic improvements in component life, particularly when applied to components that operate in very aggressive environments. This results in cost savings through reduced downtime and increased operational efficiency. Customers include leading companies operating in oil and gas exploration and production, valve and pump manufacturing, nuclear, advanced engineering and aerospace industries.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 09, 2016 09:18 ET (13:18 GMT)