PARITY GROUP PLC
PARITY GROUP PLC
Proposed Firm Placing, Placing and Open Offer and Interim Management Statement
Parity Group plc has announced that it proposes to raise approximately 6.4 million (net of expenses) by way of a Firm Placing of 20,873,087 New Ordinary Shares and a Placing and Open Offer of 9,561,696 New Ordinary Shares at the Issue Price of 23 pence per New Ordinary Share.
Proposed Firm Placing, Placing and Open Offer to raise approximately 6.4 million (net of expenses)
Issue Price of 23p per New Ordinary Share represents a discount of 16.4 per cent to the closing middle market price on 10 May 2011 (being the last dealing day prior to this announcement)
Qualifying Shareholders can subscribe for Open Offer Shares on the basis of 1 Open Offer Share for every 4 Existing Ordinary Shares held and
The net proceeds of 6.4 million will be used by management to provide additional working capital, invest in new initiatives and take advantage of opportunities to reduce the cost base.
Singer Capital Markets Limited is acting as sponsor and broker to the Company.
This announcement also serves as the Company's Interim Management Statement for the period from 1 January 2011 to 11 May 2011.
Philip Swinstead, Chairman of Parity, said: "Following the fundamental restructuring of the Board last year, when I and my fellow founder of Parity re-joined the Company, a good deal of progress has been made in addressing the issues facing the business. The cost base has been reduced, new banking facilities negotiated, and the business reorganised to focus on newer and more profitable emerging demands and technologies.
"It is clear to us however that, in order to reduce the reliance on debt facilities, to implement further cost reductions, and to enable us to invest in new growth initiatives, it is now necessary to raise these additional funds.
"Overall and as expected, we have seen more stable revenues and performance in the first quarter of the current year, which is encouraging. As the markets for IT services improve, and with the additional cost-cutting measures and new initiatives enabled by the additional funds, the Board believes that further improvement to performance will be possible, albeit with significant results not showing through fully until next year."
The Prospectus, Application Form and Form of Proxy will be posted to shareholders (other than shareholders in Prohibited Territories) today. The Prospectus contains a notice of general meeting to approve, inter alia, the Firm Placing, Placing and Open Offer, which will be held at 11.00 a.m. on 27 May 2011 at Wimbledon Bridge House, 1 Hartfield Road, Wimbledon, London SW19 3RU.
When posted, copies of the Prospectus will be submitted to the UKLA's National Storage Mechanism and will be available for inspection at www.hemscott.com.
In addition, the Prospectus will be available to view on the Company's website (www.parity.net). Copies of the Prospectus will be also available from the offices of Pinsent Masons LLP, 30 Crown Place, London EC2A 4ES.