Starcom PLC Placing (1151N)
21 October 2016 - 7:00AM
UK Regulatory
TIDMSTAR
RNS Number : 1151N
Starcom PLC
21 October 2016
21 October 2016
Starcom Plc
("Starcom" or the "Company")
Placing
Starcom (AIM: STAR), the AIM technology company specialising in
the development of wireless solutions for the remote tracking,
monitoring and protection of a variety of assets and people, is
pleased to announce that the Company has conditionally raised
GBP300,000 with new and existing shareholders, before expenses,
through a placing of 12,000,000 new Ordinary Shares of no par value
(the "Placing Shares") at a price of 2.5p per Placing Share (the
"Placing"). The Placing Shares were placed by the Company's
brokers, Northland Capital Partners Limited and Peterhouse
Corporate Finance Limited.
Reasons for the Placing
The proceeds of the Placing will be used to provide the Company
with additional working capital. At the time of the publication of
the interim results for the period to 30th June 2016 in early
September, the Board stated that it was satisfied that cash
resources were sufficient for the present needs of the Company.
This was on the basis of certain assumptions regarding account
settlement by specific distributors. The Company has since received
formal confirmation of the timing of the receipt of these payments,
which will now be made in early 2017 rather than in the last
quarter of 2016 as originally planned. The proceeds of the Placing
will provide additional working capital for the Company in the
interim period.
In addition, a loan facility of approximately US$100,000 that
had been under negotiation from an industry export association in
Israel was unexpectedly withdrawn without reason.
The enhanced certainty and transparency of the Company's
near-term revenues enables the Board to be increasingly confident
that Starcom will at least meet the expectations, outlined at the
time of the interim results, for improvement in revenues for
2016.
The Placing
The issue of the Placing Shares is conditional, inter alia, on
admission to trading on AIM ("Admission") which is expected to
occur at 8.00 am on 27 October 2016. On Admission, the Placing
Shares will rank pari passu with the Company's existing Ordinary
Shares.
Following Admission, the Directors and co-founders will have the
following interests in the Ordinary Shares of the Company:
Ordinary Shares % of voting
rights
Avi Hartmann 20,711,168 14.0
Avi Engel 498,334 0.3
Michael Rosenberg* 1,395,000 0.9
Uri Hartman 22,111,166 15.0
Doron Kedem 22,111,166 15.0
* Mr Rosenberg's shares are held through his personal pension
plan of which he is the sole beneficiary.
Total voting rights
Following Admission, the Company's enlarged issued share capital
will comprise 147,830,680 Ordinary Shares. The Company does not
hold any shares in treasury. Therefore, the total number of
Ordinary Shares with voting rights will be 147,830,680. This figure
may be used by shareholders in the Company as the denominator for
the calculations by which they will determine if they are required
to notify their interest in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance
and Transparency Rules.
The Market Abuse Regulation (MAR) became effective from 3 July
2016. Market soundings, as defined in MAR, were taken in respect of
the Placing with the result that certain persons became aware of
inside information, as permitted by MAR. That inside information is
set out in this announcement and has been disclosed as soon as
possible in accordance with paragraph 7 of article 17 of MAR.
Therefore, those persons that received inside information in a
market sounding are no longer in possession of inside information
relating to the Company and its securities.
-ends-
For further information, please contact:
Starcom Plc
Michael Rosenberg, Chairman 07785 727 595
Avi Hartmann, CEO +972 5430 70103
+972 3619 9901
Northland Capital Partners Limited
(Nominated Adviser and Broker) 020 3861 6625
Edward Hutton / David Hignell (Corporate Finance)
John Howes / Abigail Wayne (Sales and Broking)
Peterhouse Corporate Finance (Joint Broker) 020 7469 0930
Lucy Williams / Charles Goodfellow / Eran Zucker
Leander PR (Financial PR) 020 7520 9267
Christian Taylor-Wilkinson 07795 168 157
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
October 21, 2016 02:00 ET (06:00 GMT)