Result of EGM

 

TIDMTLR 
 
RNS Number : 9367P 
Local Radio Company PLC (The) 
01 April 2009 
 

1 April 2009 
 
 
THE LOCAL RADIO COMPANY PLC ("LRC" OR THE "COMPANY") 
Result of General Meeting 
 
 
The Board announces that at today's General Meeting, the resolutions put before 
the Company's Shareholders were not passed. Consequently, the proposed Open 
Offer to raise approximately GBP1.51 million (before expenses) for the Company 
(which is conditional on all resolutions being passed at the General 
Meeting) cannot now proceed. 
 
 
The proposed additional capital injection would have ensured that the Company 
was able to support its local market-leading commercial radio stations and give 
it time to carry out a radical restructuring of the business' cost base whilst 
allowing shareholders to participate in any recovery. 
 
 
Whilst the local stations are trading in line with management expectations and 
the cost reduction programme is making good progress, the Company's cash 
position is extremely tight. Taking into account the costs associated with the 
Open Offer and the additional costs likely to be incurred in connection with the 
Offer from UKRD Group Limited (as announced on 27 March 2009), the company's 
cash flow projections show it requires an injection of funds by the end of April 
2009 in order to continue trading. The Board is actively reviewing all options 
and will update shareholders as soon as possible. 
 
 
Terms defined in the circular dated 6 March 2009 in relation to the Open Offer 
have the same meaning in this announcement. 
 
 
For further information please contact: 
 
 
Rhys Davies 
The Local Radio Company 
Tel: [phone] 
 
 
Roxane Marffy/Brett Miller 
Ruegg & Co Limited 
Nominated Adviser & Broker 
Tel [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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