Baskerville Capital PLC First Day of Dealings (4820R)

TIDMBASK

RNS Number : 4820R

Baskerville Capital PLC

22 September 2017

Baskerville Capital PLC

(the "Company")

First Day of Dealings

Placing to raise GBP1.8m

Admission to the Official List

Baskerville Capital PLC (LSE: BASK), a newly established company formed to acquire a company or business with a technology focus, announces that it has successfully raised gross proceeds of GBP1.8m through the placing of 36,000,000 Ordinary Shares at a price of GBP0.05 per Ordinary Share.

Application has been made for the Ordinary Shares to be admitted to the Official List, by way of a Standard Listing, and to trading on the Main Market. Dealings in the Ordinary Shares are expected to commence at 8.00 a.m. on 22 September 2017. The Company's prospectus is available to view here: www.baskcap.com

About Baskerville Capital PLC

The Company has been formed to undertake an Acquisition in the technology sector. The Company does not have any specific acquisition under consideration and does not expect to engage in substantive negotiations with any target company or business until after Admission. The Company expects that any funds not used in connection with an Acquisition will be used in connection with internal or external growth and expansion, and working capital in relation to the acquired company or business or will be used for future bolt-on acquisitions.

It is anticipated that the Company will focus its acquisition strategy principally in the UK but will also consider a target Acquisition in other jurisdictions (except for territories with significant geo-political or economic risk).

Following completion of an Acquisition, the objective of the Company will be to operate the acquired business and implement an operating strategy to generate value for its Shareholders through operational improvements and potentially through additional complementary acquisitions following an Acquisition.

Unless required by applicable law or other regulatory process, no Shareholder approval will be sought by the Company in relation to an Acquisition. An Acquisition will likely be treated as a Reverse Takeover under Chapter 5 of the Listing Rules. To the extent that an Acquisition is treated as a Reverse Takeover, the Company intends to seek re-admission of the enlarged group to listing on the Official List and trading on the London Stock Exchange, or to the AIM Market operated by London Stock Exchange, or to another stock exchange.

Following completion of the Acquisition, the Company intends to implement a strategy designed to maximise Shareholder value by optimising the capital structure of the acquired activities, implementing disciplined operational improvements and strengthening management.

The Company's objective is to take advantage of opportunities to invest in the technology sector and to operate the company or business that it acquires in the Acquisition. The Company anticipates that the target may be valued at between GBP10 million and GBP100 million.

The Directors' intention is to create a trading business, rather than an investment entity. It is not intended that the Company acquire minority stakes in target entities.

Investment Strategy

The investment strategy of the Company will be focussed towards the identification and acquisition of a company or business which:

-- is run by management with a strong track record of generating growth for shareholders and a proven experienced business record;

-- has a compelling case for providing the foundation or platform for a scalable business which generates or the potential to generate substantial and sustainable free cash flow over time;

   --    has the ability to grow with additional capital or be replicated in other markets worldwide; 

-- has a sustainable competitive advantage or a unique selling proposition, perhaps arising from a technology that is in a high growth market;

   --     has the potential for a significant return for the Company's shareholders; and 

-- can be funded adequately to allow the delivery of credible technological and commercial milestones, thus creating significant growth opportunities for Shareholders.

Directors and Founders

The Board currently comprises two Directors, who collectively have extensive experience and a proven track record in investment, corporate finance and business acquisition, operation and development in the technology sector and are well placed to implement the Company's business objective and strategy.

   --     Rodger Sargent - Non-Executive Director & Chairman 
   --     Derek Kehoe - Non-Executive Director 

The Directors believe that the Founders, together with the Board, comprise a knowledgeable and experienced group with extensive experience of making international acquisitions and operational improvement. The Directors further believe that the Founders' track record, demonstrate their ability to source, structure and complete acquisitions, return value to investors and introduce and complete operational improvements to companies. The Founders will bring their extensive experience, skills and expertise to bear, initially in sourcing, evaluating, structuring and executing an Acquisition.

 
 Christopher         a serial investor in technology companies 
  Akers               and founder of Sports Internet Group 
                      plc, which was acquired by British 
                      Sky Broadcasting plc for GBP300m 
------------------  ------------------------------------------ 
 Derek Kehoe         a career of more than 30 years in the 
                      banking sector, specialising in fixed 
                      income and derivative products 
------------------  ------------------------------------------ 
 Russell Backhouse   an experienced finance director and 
                      corporate financier and has served 
                      on a number of company boards, both 
                      public and private, with a particular 
                      focus on the TMT (technology, media 
                      & telecoms) sector 
------------------  ------------------------------------------ 
 Rodger Sargent      founder and finance director of a number 
                      of quoted and private companies over 
                      the past fifteen years 
------------------  ------------------------------------------ 
 

Full details of the Directors and Founders can be found in the prospectus (pp. 37-41)

Significant shareholders

On Admission, the following Shareholders will have a notifiable interest in the issued shares of the Company:

 
 Name                               Ordinary       Percentage 
                                   Shares on      of enlarged 
                                   Admission    share capital 
-------------------------------  -----------  --------------- 
 
 Michael Wright                    8,000,000            14.6% 
 Derek Kehoe (Non-Executive 
  Director)                        3,700,000            7.74% 
 Hargreave Hale                    3,400,000             7.1% 
 Christopher Akers                 2,500,000            5.23% 
 Russell Backhouse                 2,500,000            5.23% 
 Rodger Sargent (Non-Executive 
  Chairman)                        2,500,000            5.23% 
 Mohamed Hanif Patel               1,800,000             3.8% 
 Courtney Investments              1,600,000             3.3% 
 MD Barnard                        1,600,000             3.3% 
 
 Total                            21,600,000           45.19% 
 

PLACING STATISTICS

 
 Number of Existing Ordinary Shares                10,000,000 
--------------------------------------  --------------------- 
 Placing Price                           GBP0.05 per Ordinary 
                                                        Share 
--------------------------------------  --------------------- 
 Number of Placing Shares                          36,000,000 
--------------------------------------  --------------------- 
 Number of Fee Shares                               1,800,000 
--------------------------------------  --------------------- 
 Enlarged Share Capital in issue 
  following the issue of the Placing 
  Shares and Admission                             47,800,000 
--------------------------------------  --------------------- 
 Percentage of Enlarged Share Capital 
  represented by Placing Shares                        75.31% 
--------------------------------------  --------------------- 
 Gross proceeds of the Placing                   GBP1,800,000 
--------------------------------------  --------------------- 
 Proceeds of the Placing receivable              GBP1,650,000 
  by the Company (after deduction 
  of transaction costs) 
--------------------------------------  --------------------- 
 Number of Ordinary Shares to be 
  issued if all outstanding Warrants 
  are exercised                                    13,500,000 
--------------------------------------  --------------------- 
 

Enquiries:

 
 Baskerville Capital                                    www.baskcap.com 
  PLC 
 Rodger Sargent                                         via Walbrook PR 
 
 Walbrook PR Ltd       Tel: [phone] or [e-mail] 
 Paul McManus / Paul                    Mob: [phone] / Mob: 07866 
  Cornelius                                                     384 707 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 22, 2017 03:00 ET (07:00 GMT)