![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Nxt | LSE:NTX | London | Ordinary Share | GB0004397567 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 4.35 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:0627O NXT PLC 29 July 2003 NXT plc 29 July 2003 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, DENMARK, FRANCE, JAPAN, MALTA, NEW ZEALAND, REPUBLIC OF IRELAND, SOUTH AFRICA, SWITZERLAND AND THE UNITED STATES Proposed rights issue NXT plc, the British audio and speech technology company, today announces it is raising a net #9.5 million of new equity capital through a Rights Issue at 70.0 pence per share, representing a discount of 50.4 per cent. to the mid-market price of NXT's shares as at close of trading yesterday. The Rights Issue of 1 new Ordinary Share for every 5 Existing Ordinary Shares has been fully underwritten by Bridgewell. The proceeds of the Rights Issue will be used to strengthen the balance sheet: * to give a stronger financial position in negotiations with potential customers; * to allow NXT to robustly defend its intellectual property should it be necessary; and * to ensure that the Company is not at risk from any delays in its customers' product launch plans. We have separately announced today that we have signed a licence with Synaptics, the leading provider of Touchpads to the portable personal Computer Market. Synaptics plans to pioneer the inclusion of NXT technology in its components to replace existing loudspeakers. David Pearson, Chief Executive of NXT commented: "A combination of increasing commercialisation of our technology and appropriate cost-cutting has steadily reduced our net cash outflow. However, this additional funding will put us in a stronger position to build on the foundations we have already established and create long term value for all our stakeholders" For further information please contact: David Pearson / Peter Thoms Tel: 020 7343 5050 NXT plc Giles Elliott / John Craven Tel: 020 7003 3000 Bridgewell Nick Lockwood Tel: 020 7878 3181 Capital MS&L Introduction NXT plc ("NXT" or the "Company") is seeking to raise up to #10.4 million of new capital by way of a rights issue underwritten by Bridgewell Securities Limited ("Bridgewell"). The Company is issuing up to 14,853,051 New Shares at a price of 70 pence per New Share, made on the basis of 1 New Share for every 5 Existing Shares (the "Rights Issue"). The Rights Issue is conditional, inter alia, upon the approval of Shareholders. This approval will be sought at an extraordinary general meeting of shareholders to be held on 14 August 2003 and convened by a notice set out in a circular (" Circular") to shareholders to be posted as soon as practicable. The Rights Issue Background to and reasons for the Rights Issue As at 31 December 2002, the Company had cash balances of #7.4 million compared with #12.2 million as at 30 June 2002. Based on the unaudited management accounts, cash balances as at 30 June 2003 were #5.9 million and the net cash outflow for the year, and the six months, to that date were #6.3 million and #1.5 million respectively. The Company was also pleased to announce in its interim results the continued progress in the commercialisation of NXT technology and the increasing strength of our collaboration with strategic partners. During the last 6 months the Company has reduced further its cost base and also received a $4 million (#2.5 million) payment from a new licensee. We are encouraged by the progress of many of the activities of the Company, a number of which are confidential owing to the commercial sensitivities of our customers, and we refer to progress on some of these under "Current Trading" below. Despite this encouraging progress, there are a number of reasons why we believe that it is prudent and desirable to strengthen the balance sheet and provide extra operational headroom: * it is possible that the plans of some of our customers may be delayed. Although the Company has not been notified of any programme delays we have noted that external factors such as the conflict in Iraq and the SARS outbreak have led to conservatism in decision making, and, for example, the reluctance on behalf of some key engineers employed by our customers to travel to the Far East where the majority of products using our technology are produced. * in negotiations with prospective customers it is highly beneficial for the Company to be able to present a strong financial position. Large corporations need to be assured that their prospective partners have substance and are going to continue for the long term. Financial strength also underpins NXT's position when negotiating with licensees. * as a technology licensing company, it is inevitable that, from time to time, there will be challenges to our intellectual property. It is, therefore, important to demonstrate that we have sufficient funds to meet such challenges. The fact that a company has a strong balance sheet and a willingness to engage in a robust defence may often be enough to discourage the threat. Having considered all of these factors, the Board is of the view that the Company would benefit from raising additional financing. It is still probable that we would reach profitability without additional funding being required but, with a strengthened balance sheet, we will seek to accelerate the further commercialisation of our technology, drive growth in sales and overcome any constraints on that process. The net proceeds of #9.5 million will, therefore, be used to strengthen the Company's balance sheet and to finance the continuing support of our licensees in their efforts to roll-out products using NXT technology, the continued development of the core technology and the working capital requirements of the Group. Principal terms and conditions of the Rights Issue It is proposed to issue up to 14,853,051 New Shares under the Rights Issue to raise approximately #9.5 million, after expenses. The issue price of 70 pence per New Share represents a 50.4 per cent. discount to the closing middle market price of 141 pence per Share on 28 July 2003, the latest practicable date before the announcement of the Rights Issue. Qualifying Shareholders will be offered New Shares at a price of 70 pence per New Share on the following basis: 1 New Share for every 5 Existing Shares held and registered in their name at the 8 August 2003 and so in proportion for any other number of Shares then held. The rights to fractions of New Shares will be rounded down to the nearest whole number of New Shares and will not be allotted to Qualifying Shareholders. The Rights Issue is conditional, inter alia, upon: (i) the passing of the resolution set out in the notice to the EGM set out in the Circular; (ii) an underwriting agreement made between the Company, Bridgewell Limited, and Bridgewell Securities Limited (the "Underwriting Agreement") having become unconditional in all respects (save for the condition relating to Admission) and not having been terminated in accordance with its terms by not later than 8.00 am on 15 August 2003 (or such later time and/or date as Bridgewell and NXT may agree (not being later than 8 September 2003)); and (iii) Admission having occurred by not later than 8.00 am on 15 August 2003 (or such later time and date as Bridgewell and NXT may agree). The New Shares, when issued and fully paid, will rank pari passu in all respects with the Existing Shares including the right to receive all dividends declared and paid and all distributions made after their issue. The Company has arranged for the Rights Issue to be underwritten in order to provide certainty as to the amount of capital to be raised. Under the Underwriting Agreement, Bridgewell, as agent for the Company, has conditionally agreed to procure subscribers for or, failing which, itself to subscribe as principal for the New Shares not taken up in the Rights Issue at the price of 70 pence per New Share. Based on the Existing Issued Share Capital, up to 14,853,051 New Shares will be offered pursuant to the Rights Issue and this number of New Shares has been underwritten by Bridgewell. If, as at the 8 August 2003, further Shares have been issued pursuant to the exercise of any options under the Employee Share Schemes, the number of New Shares offered pursuant to the Rights Issue could rise. These additional New Shares have not been underwritten. Admission is expected to occur and dealings to commence in the New Shares (nil paid) on 15 August 2003. The latest time and date for acceptance and payment in full under the Rights Issue is expected to be 9.30 am on 8 September 2003. Results estimate On the basis of the unaudited interim statement of NXT for the six months ended 31 December 2002 and the unaudited management accounts of NXT for the six months ended 30 June 2003, the Directors estimate that the loss before tax of NXT for the year ended 30 June 2003 was #10.2 million with a loss after tax of #9.4 million. Current trading and prospects In the year ending 30 June 2003, the Company's overall performance was in line with expectations. Despite continuing economic difficulties in many markets in the world, sales growth in New Transducers Ltd. has been over 200 per cent., strongly supported by a major licence with 3M announced in February. Work on the 3M project is running ahead of plan. Key developments in the year have been the further strengthening of relationships with major corporations such as NEC, TDK and Pioneer in Japan, 3M and Brookstone in North America, and Philips in Europe. NEC has recently announced that it has developed mobile phones for the 3G market using NXT SoundVu technology. With NEC's successful launch of LCD monitors, now numbering over 20 models, and with 3M's launch of a SoundVu equipped Rear Screen projection TV, SoundVu has now been validated across a range of sizes and product types. In addition there is continued progress in bringing products to market in the longer-term development areas such as Automotive, and, based on information received from our licensees, we expect the world's first mobile phone using SoundVu technology to be introduced to the market this year. We have separately announced today that we have signed a licence with Synaptics, the leading provider of Touchpads to the portable personal Computer Market. Synaptics plans to pioneer the inclusion of NXT technology in its components to replace existing loudspeakers. Cyrus Electronics has continued to perform well with sales growth of 7 per cent. supported by innovative product development and the introduction of products into new markets. 20/20 Speech has maintained its previous levels of performance but remains at an early stage in its commercial development and continues to operate in a difficult market. However, there has been a marked change in the profile of that company's customer base as business with the Ministry of Defence declines and is replaced by new commercial business. The most promising feature is the opportunity to adapt our transcription software, first developed for use in broadcasting, to new markets such as the legal deposition market in the US. It must be recognised that whilst these new opportunities represent an exciting potential source of new business, they are still in the very early stages of commercialisation. Further reductions in group overheads have been implemented as the evolution of the Company from a research based to a customer-focussed enterprise continues. Based on unaudited management accounts to 30 June 2003 net cash outflow in the six months to 30 June 2003 was #1.5 million and going into the new financial year our costs in the technology businesses are 24 per cent. lower than the peak of three years ago and cash balances remain healthy at #5.9 million. The Company's relationships with major multinational corporations combined with new product introductions are encouraging and should lead to increased sales across all key markets. In particular, the Board anticipates that the first full year of SoundVu sales will show significant progress, reflecting the steady roll-out of products during the current financial year. Given this increased sales potential along with the continued judicious management of costs already in place, the Board believes that the continued trend of reduced trading losses can be maintained in the current financial year. Intentions of Directors David Pearson, Peter Thoms, Anita Frew, Ian Buckley, Tony Knox and Henry Azima have stated their intention to take up their rights under the Rights Issue. Gordon Owen has stated his intention to subscribe for such number of New Shares as can be funded by the net proceeds of the sale of the balance of his remaining entitlement. Extraordinary General Meeting An EGM will be held at Bridgewell Limited, Old Change House, 128 Queen Victoria Street, London, EC4V 4BJ at 10. 00 am on 14 August 2003, at which the resolution necessary to enable the rights Issue will be put to Shareholders for approval. Proposed timetable 2003 Record Date for the Rights Issue 8 August Latest time and date for receipt of Forms of Proxy 10.00 am on 12 August Extraordinary General Meeting 10.00 am on 14 August Despatch of Provisional Allotment Letters (to Qualifying non-CREST 14 August Shareholders only) London Stock Exchange 8.00 am on 15 August Existing Shares marked 'ex' by London Stock Exchange 8.00 am on 15 August Nil Paid Rights and Fully Paid Rights credited to stock accounts in Crest 8.00 am on 15 August and enabled Recommended latest time for requesting withdrawal of Nil Paid Rights or 4.30 pm on 1 September Fully Paid Rights from CREST (i.e. if your Nil Paid Rights are in CREST and you wish to convert them into certificated form) Latest time for depositing renounced Provisional Allotment Letters, Nil 4.30 pm on 2 September paid, into CREST or for dematerialising Nil Paid Rights or Fully Paid Rights into a CREST stock account Latest time and date for splitting Provisional Allotment Letters, nil paid 3.00 pm on 4 September or fully paid Latest time and date for acceptance, payment in full and registration of 9.30 am on 8 September renunciation of Provisional Allotment Letters Dealings in New Shares, fully paid, commence on the London Stock Exchange 8.00 am on 9 September New Shares credited to CREST stock accounts 9 September Expected dispatch of definitive share certificates for New Shares by 15 September Notes (i) The dates set out in the expected timetable of principal events above and mentioned throughout this document and in the Provisional Allotment Letter may be adjusted by NXT, in which event details of the new dates will be notified to the UK Listing Authority and to a Regulatory Information Service and, where appropriate, to Shareholders. (ii) References in this document are to London time unless otherwise stated. This announcement does not constitute or form part of, and should not be construed as, an offer for sale or subscription of, or solicitation of an offer to buy or subscribe for, any securities of NXT plc nor should it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision in connection with the proposed Rights Issue should be made solely on the basis of the information contained in the Circular. This announcement is not for publication or distribution or release, directly or indirectly, in the Australia, Canada, Denmark, France, Japan, Malta, New Zealand, Republic of Ireland, South Africa, Switzerland and the United States. This announcement does not constitute or form any part of any offer to sell, issue or to acquire any securities of the Company in the Australia, Canada, Denmark, France, Japan, Malta, New Zealand, Republic of Ireland, South Africa, Switzerland and the United States or in any other jurisdiction. Neither the Company's New Ordinary Shares nor the Provisional Allotment Letters are being registered under the US Securities Act of 1933, as amended (the 'Securities Act') and may not be offered or sold in the United States (as such term is defined in Regulation S under the Securities Act) at any time except pursuant to the terms of an applicable exemption under the Securities Act and applicable securities laws of the states of the United States. Bridgewell Limited and Bridgewell Securities Limited are acting for the Company, and no one else, in connection with the Rights Issue and will not be responsible to any other person for providing the protections afforded to their respective clients or for providing advice in relation to the proposed Rights Issue. Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and, by their nature, are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, expressed or implied by the forward-looking statement. The information and opinions contained in this announcement are subject to change without notice and NXT plc assumes no responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein. Terms in this announcement shall bear the same meaning, unless the context otherwise requires, as defined in the Circular, published today in respect of the Rights Issue. This information is provided by RNS The company news service from the London Stock Exchange END IOEEAXXNAENDEEE
1 Year NXT Chart |
1 Month NXT Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions