Issue of Equity, Total Voting Rights (6007X)

TIDMCGA

RNS Number : 6007X

China Gateway International PLC

16 February 2012

FOR IMMEDIATE RELEASE 16 February 2012

China Gateway International PLC

("CGI" or "the Company")

Issue of Equity

Total Voting Rights

CGI announces that it has issued a total of 1,200,000 new ordinary shares of 1p each ("Shares") being 715,000 Shares to Omega Properties Limited ("Omega") and 485,000 Shares to Blenheim Limited ("Blenheim") at a price of 5.00p per Share, that price being the closing mid-market price on AIM on 2 December 2012, the date when arrangements were agreed. Accordingly the subscription for Shares has raised GBP60,000 in cash before expenses which will be used for general working capital purposes.

Omega is a company connected to Ken Wills, director of CGI, and Blenheim is a company connected to Christopher Seymour-Prosser, director of CGI, and thus the subscription constitutes a "related party" transaction under the AIM Rules. The independent Directors, having consulted with the Company's Nominated Adviser, consider that the terms of the subscription are fair and reasonable insofar as its shareholders are concerned.

Application will be made for the Shares, which when issued will rank pari passu with all existing ordinary shares, to be admitted to trading on AIM. Trading is expected to commence on or around 22 February 2012.

Following the subscription, the Company's issued share capital will consist of 30,024,064 ordinary shares with a nominal value of 1p each, with voting rights ("Ordinary Shares"). The Company does not hold any Ordinary Shares in Treasury.

Therefore the total number of Ordinary Shares in the Company with voting rights will be 30,024,064.

The above figure of 30,024,064 Ordinary Shares 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 a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

Following the subscription the interests of the subscribers will be as follows:

 
 Name                Related Party           Participation   Resulting holding 
------------------  ----------------------  --------------  ------------------- 
 Omega Properties 
  Limited *          Directors' interests    715,000         6,696,079 (22.30%) 
------------------  ----------------------  --------------  ------------------- 
 Blenheim Limited 
  **                 Directors' interests    485,000         2,672,443 (8.90%) 
------------------  ----------------------  --------------  ------------------- 
 

* The shares in Omega Properties Limited are registered in the name of F&A Services Limited, a company incorporated in Malta, which holds them on discretionary trust for a class of beneficiaries which includes Ken Wills, Director and CEO of CGI.

** The shares in Blenheim Limited are registered in the name of F&A Services Limited, a company incorporated in Malta, which holds them on discretionary trust for a class of beneficiaries which includes Chris Seymour-Prosser, the Managing Director of CGI.

Following the subscription, Ken Wills will have interests in 8,447,008 ordinary shares or 28.13% of the share capital (including the shares held by Heritage Building Limited) in the Company, and Chris Seymour-Prosser will have interests in 10,426,427 ordinary shares, or 34.73% of the share capital in the Company. The total number of ordinary shares purchased by Mr Seymour-Prosser in the last twelve months is less than 1% of the voting share capital, and his current percentage holding is less than the highest percentage of shares in which he was interested in the previous twelve months.

For further information, please contact:

 
China Gateway International PLC 
 KenWills                          [phone] 
 
Beaumont Cornish Limited 
 Roland Cornish                    [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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