Trading Update and Fundraise of GBP3.316 million

    RNS Number : 3987A
  Libertas Capital Group PLC
  31 July 2008
   

    Libertas Capital Group plc
    31st July 2008
       
    LIBERTAS CAPITAL GROUP PLC 
    TRADING UPDATE AND FUNDRAISE OF £3.316 million

    Libertas Capital Group plc ("Libertas Capital or the Group"), (AIM: LBR), the international financial services firm, announces a trading
update and a fundraise of £ 3.316 million set out below.

    Highlights

    *     Difficult trading conditions in the first half of 2008 results in pre-tax losses

    *     Rationalisation programme put into place

    *     Balance sheet strengthened by fundraising of £3.316 million through equity-linked debt and new equity with warrants attached

    *     Strong pipeline of mandated transactions for the second half of 2008

    *     Improved performance in second half of 2008 expected

    Trading Update

    As with many businesses in the financial services sector, Libertas Capital has experienced difficult trading conditions in the first
half to 30th June 2008, especially towards the latter part of this period. Hence revenues will not exceed £4 million resulting in a pre-tax
loss for the first half of 2008. The full results to 30th June 2008 will formally be announced and published on Tuesday 30th September
2008.

    The board of Libertas Capital has therefore carried out a rationalisation review and is now implementing a rationalisation programme
across the Group, the aim of which will result in an approximate 20% in head count reduction. Further details of this will be set out in the
interim results announcement on 30th September 2008.

    The pipeline of mandated transactions remains strong. Hence the board of Libertas Capital anticipates improved performance in the second
half of 2008, depending on market conditions.

    Fundraising

    In order to strengthen the balance sheet, Libertas Capital has raised £ 3.316 million in two instruments from a group of investors
including the executive board directors of Libertas Capital (the "Fundraising"). The first instrument is an equity-linked loan note of £
0.915 million with a three year duration to 1st August 2011. The coupon for the initial two years is 8% with the coupon increasing to 12% in
the third year and the coupon is payable annually.
    
 

    Each equity-linked loan note has a par value and subscription price of £1 with 10 ordinary share purchase warrants attached ("Warrant or
Warrants") to each equity-linked loan note subscribed for. The Warrants have a five year term to 1st August 2013 and each Warrant is
exercisable at 10p for the duration of the term.


    The balance of the money is being raised by the issue of £2.401 million in 24,010,000 ordinary shares with nominal value 1p ("Ordinary
Share or Ordinary Shares"). The Ordinary Shares will be issued at 10p. Attached to each Ordinary Share is one Warrant exercisable issued on
the same terms as set out above, save for 8,660,000 Ordinary Shares that will not have any Warrants attached.

    The new issue of 2,450,000 Ordinary Shares and 12,500,000 new Warrants forming part of the Fundraising are being issued with immediate
effect. Application for the admission of 2,450,000 new Ordinary Shares for trading on AIM has been submitted and dealings are expected to
commence on 7th August 2008.

    The new issue of 21,560,000 Ordinary Shares and 12,000,000 new Warrants forming part of the Fundraising will be subject to authorisation
being granted by the Group's shareholders in general meeting anticipated to take place no later than 1st September 2008. Application for
admission for these shares will be made immediately after the shareholders general meeting has approved this further issuance of new
Ordinary Shares. Further details will be announced and communicated to shareholders shortly.

    The Fundraising will result in the new issue of 24,010,000 Ordinary Shares and of 24,500,000 new Warrants. After this new equity issue
the total number of Ordinary Shares will be 78,957,005 and 24,500,000 new Warrants of which 389,949 Ordinary Shares are held in Treasury.
Thus the total number of Ordinary Shares with voting rights is 78,573,056 Ordinary Shares.

    The executive board directors Jakob Kinde, Henry Okereke and Frank Dullaghan will be participating in the new equity issue and
consequently will increase their individual share holdings as set out below.



 Name                Number of new         Number of new      New Shareholding  % of Shareholding
                    Ordinary Shares           Warrants
 Jakob Kinde                 1,000,000             1,000,000        14,184,586              18.05

 Henry Okereke               1,000,000             1,000,000        13,108,298              16.68

 Frank Dullaghan               500,000               500,000         8,258,306              10.51




    Jakob Kinde, Executive Chairman said: "We are delighted that this group of investors have decided to support our Group through this
difficult time and have confidence in our business going forward. We look forward to working with them to jointly develop new business
opportunities of mutual benefit."



    For further information please contact:

    Libertas Capital Group plc                        [phone]
    Jakob Kinde, Executive Chairman
    Henry Okereke, Chief Executive

    Grant Thornton                                          [phone]
    Fiona Owen


    Notes to Editors

    About Libertas Capital Group Plc

    Libertas Capital is an international financial services firm offering its clients a full range of dedicated independent Corporate
Finance Advisory, Research and Distribution services.

    Corporate finance services include investment bankers with substantial depth of European/international M&A and general corporate finance
experience, as well as entrepreneurs and industrial professionals with extensive experience and expertise in their particular fields, having
completed in excess of US$100 billion in transactions.

    In our research and distribution services we offer our clients a dedicated research capability with deep industry knowledge in our core
sectors- Renewable Energy, Energy (including oil and gas and natural resources), Infrastructure, Real Estate, Healthcare, Technology and
Telecom. Our extensive distribution network covers UK, European, Asian, Middle Eastern and US institutional clients.

    Our business is based on core values and strengths which we believe both differentiate Libertas Capital from its competitors and give us
a competitive advantage. We aim to provide a high level of customer service that will result in long term client relationships based on the
principles of openness, innovation and creativity.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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