Location Sciences Group PLC Placing to Raise £0.41 Million (3357R)

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RNS Number : 3357R

Location Sciences Group PLC

14 June 2018

14 June 2018

Location Sciences Group PLC

("Location Sciences" or the "Company")

Placing to raise GBP0.41 million

Location Sciences Group PLC (AIM: LSAI), the leading mobile location data and intelligence expert, is pleased to announce that it has raised, in aggregate, GBP412,372 before expenses by way of a placing of 1,374,574,705 new ordinary shares of 0.01 pence each (the "Ordinary Shares") (the "Placing") at 0.03 pence per share (the "Issue Price"). The Placing is conditional on admission of the new Ordinary Shares to trading on AIM ("Admission").

The Issue Price represents a discount of approximately 13.04 per cent. to the closing price of 0.0345 pence per share on 13 June 2018, the last business day prior to the date of this announcement, and a premium of approximately 8.21 per cent. to the Company's 60-day average closing price. The net proceeds of the Placing will be used primarily to invest in and market the Company's new location verification product, Verify, and for 2018 working capital purposes.

Location data is increasingly becoming a mainstream marketing tool, with advertisers seeking greater transparency from agencies and publishers as well as alternatives to the walled worlds of Facebook and Google. This shift in the advertising industry underlines the market opportunity for Verify, which promotes transparency across the supply chain and guarantees accurate independent verification of location data.

The directors of the Company (the "Directors") are pleased to report that Verify, with its first mover advantage, is already gaining market traction and the Company's panel of seven million consumers is proving to be attractive to a wide range of organisations looking to maximise the impact of their digital spend.

Following the Placing, the Directors are confident that the Company now has the platform to seize the exciting opportunity for location verification, and believe this will become an increasingly important element of Location Sciences' business as this market grows in the UK and Europe.

Furthermore, the Directors have conducted a review of the UK's location data and insights market which has highlighted possible acquisition opportunities for the Company. Any material acquisition will be subject to shareholder approval at a general meeting and will only be progressed if it both solidifies the Company's market leading position in the UK and improves the underlying financial performance of the Company.

The Directors are excited about the opportunities in the UK market and will keep shareholders informed as their strategy progresses.

Related Party Transaction

Peel Hunt LLP ("Peel Hunt") is participating in the Placing. The participation of Peel Hunt, a substantial shareholder in the Company, is a related party transaction per Rule 13 of the AIM Rules. Accordingly, the Directors, having consulted with Stockdale Securities Limited, the Company's nominated adviser, consider that the terms and conditions of Peel Hunt's participation in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned.

Application for Admission

Application has been made to the London Stock Exchange for the admission of the new Ordinary Shares to trading on AIM. It is expected that Admission will occur and that dealings will commence at 8.00 a.m. on 19 June 2018 at which time it is also expected that the new Ordinary Shares will be enabled for settlement in CREST.

Following Admission, the number of Ordinary Shares in issue will be 15,120,321,774. This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Commenting Mark Slade, CEO of Location Sciences, said: "I am pleased to announce the completion of a successful fundraising to support the on-going marketing and commercialisation of our Verify product. It is pleasing that the Placing was over-subscribed and that the Directors are able to issue the maximum number of shares authorised by our shareholders. It's important for us to capitalise on our first mover advantage and with these new funds I am confident in gaining significant market traction over the coming months."

End

 
 Enquiries: 
 Location Sciences Group PLC           Via Redleaf Communications 
 Mark Slade, Chief Executive 
  Officer 
  David Rae, Chief Financial Officer 
 
 Stockdale Securities Limited          Tel: [phone] 
 Andy Crossley 
  Tom Griffiths 
 Ed Thomas 
 
 Redleaf Communications                Tel: [phone] 
 Charlie Geller 
 Fiona Norman 
 

About Location Sciences Group PLC:

-- Location Sciences helps companies connect the online world with the offline world using mobile location technology data. We combine cutting-edge mobile location data collection with proprietary machine learning analytics to create new value and insights from location information.

-- Location Sciences is media-agnostic and work with a variety of media, advertising, technology partners - plus the world's biggest brands. Our technology is well positioned to fulfil the need for greater accuracy and accountability in a growing market that is increasingly looking for superior data and verification.

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June 14, 2018 02:00 ET (06:00 GMT)