Catena Group PLC Result of equity subscription (8541A)

TIDMCTNA

RNS Number : 8541A

Catena Group PLC

01 October 2020

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

1 October 2020

Catena Group PLC

("Catena" or the "Company")

Result of Equity Subscription

Further to the announcement made at 07:00 on 29 September 2020, Catena is pleased to announce that it has raised gross proceeds of GBP0.8 million before expenses by way of a subscription of 1.6 million new ordinary shares of 1 pence each in the Company ("Subscription Shares") at a price of 50 pence per share (the "Subscription"). The net proceeds of the Subscription exceeded the Board's expectations and will therefore, in addition to being used to provide working capital to the Company in support of its potential acquisition of Insight Capital Partners Limited ("Insight") will be used to part fund the exercise of the option Catena holds over Insight, should the Board elect to do so. The option provides Catena the right to acquire shares of Insight increasing its shareholding to 30.2 per cent. of the enlarged share capital of Insight.

Related Party Transactions

John Murray and David Hillel, a non-executive director and the Finance Director of the Company respectively, have subscribed for Subscription Shares as outlined below:

 
 Shareholder              Number of            Number of        Shareholding   % of Enlarged 
                  Existing Ordinary         Subscription           following    Issued Share 
                             Shares    Shares subscribed    the Subscription         Capital 
                                                     for 
 John Murray                      0               40,000              40,000           0.10% 
                -------------------  -------------------  ------------------  -------------- 
 David Hillel               109,607               20,000             129,607           0.31% 
                -------------------  -------------------  ------------------  -------------- 
 

John Murray and David Hillel, being directors of the Company, are therefore classified as related parties under the AIM Rules. The directors of Catena, excluding John Murray and David Hillel, having consulted with the Company's nominated advisor, Zeus Capital Limited, consider the terms of John and David's participation in the Subscription to be fair and reasonable insofar as the Company's shareholders are concerned.

Admission

The existing ordinary shares of Catena are currently temporarily suspended pending the publication of an admission document in respect of a potential acquisition of Insight, which is deemed to be a reverse takeover under the AIM Rules, or the release of an announcement by the Company confirming that discussion and all activity relating to the potential acquisition of Insight have terminated. However, application will be made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM ("Admission") following either of these events having occurred.

Total Voting Rights

The Subscription Shares will be issued and allotted by the Company on 5 October 2020, following which the Company will have 41,161,638 ordinary shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 41,161,638 and shareholders may use this figure 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 Company under the FCA's Disclosure Guidance and Transparency Rules.

Matthew Farnum-Schneider, Catena Chief Executive, said:

"I am pleased with the demand we experienced for this subscription from both new and existing investors alike and to be able to welcome a new institutional investor to Catena's register."

* ENDS *

This announcement has been released by Matthew Farnum-Schneider, Chief Executive, on behalf of the Company.

For further information, please visit www.catenagroup.co.uk or contact:

 
Catena Group PLC 
 Matthew Farnum-Schneider                                   [phone] 
Zeus Capital Limited (Nominated Adviser 
 & Broker) 
 David Foreman / Daniel Harris / Benjamin 
 Robertson                                                 [phone] 
Newgate (Financial PR)                                     [phone] 
 Giles Croot / Robin Tozer                              [e-mail] 
 

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October 01, 2020 09:19 ET (13:19 GMT)