The Board of Good Energy, the PLUS quoted carbon solutions specialist, today announces its intention to raise up to £1,600,000 to fund projects under development and provide working capital for further growth.
Key Points
Intention to raise £1,600,000 (before expenses) via a share offer at 110p per share;
Share offer discounted to 100p per share for existing Good Energy shareholders, customers and employees;
The new shares to rank equally with existing shares;
Minimum investment of £500 per investor;
Shares to be issued are expected to qualify for EIS tax relief; and
Offer document approved by Bishop Fleming, the Company’s advisers, as a Financial Promotion under S21 of the FSMA.
The funds raised will be used mainly to further grow the business by contributing to the marketing cost of securing new customers and to fund the resultant working capital.
The directors have not set a minimum total subscription level for the whole fundraising.
Assuming that the Offer is fully subscribed, the share capital of the Group will be as follows:
Existing Ordinary Shares 6,750,767
New Ordinary Shares 1,600,000
Enlarged share Capital 8,350,767
The expected timetable is as follows:-
Offer opens | 9 November 2007 |
Closing date | 10 December 2007 |
Allocating and allotment of Offer shares | 17 December 2007 |
Unsuccessful applicants’ monies and balance cheques returned | 17 December 2007 |
Commencement of trading of the New Ordinary Shares on Plus Markets | 24 December 2007 |
Dispatch of share certificates | 24 December 2007 |
The Group's shares are traded on the PLUS-quoted market, and it will be applying for the new ordinary shares to be admitted to this market.
The Directors are making the offer of new ordinary shares at 110p, discounted to 100p for existing shareholders, customers and employees of the company. The offer price of 110p is at a premium of 45p to the average of the mid-market prices recorded at the close of business on the 5 business days up to and including 6th November 2007. The Directors believe that the subscription price for this share offer represents a fair price for each of the new ordinary shares.
Many of the Group’s shareholders have benefited in the past from the reliefs granted by the Enterprise Investment Scheme and, if the HM Revenue & Customs authorises the Group to issue EIS compliance certificates subsequent to the offer closing, the effective subscription price would be reduced by 20% to 88p (80p in the case of existing shareholders and customers). Employees of the Company will not be eligible for EIS relief.
Commenting on this transaction, Juliet Davenport, the Group’s Chief Executive said:
“We have always liked the idea of Good Energy customers being offered the opportunity to buy shares in the Company. The Company has made two share offers before, - one in June 2002 and again in June 2004, under our previous name Monkton Group. As a result of these past share offers we now have over 1,100 shareholders, and our customers own more than 50% of the company.”
Copies of the Share Offer Document may be obtained from Computershare at Computershare at:
Investor Services PLC
PO Box 82, The Pavilions
Bridgwater Road
BRISTOL BS99 7NH
United KingdomTel. 44 (0)870 707 1154.
And may be viewed online at www.goodenergy.org.uk
