| Tue 31 Mar 2009, 17:06 | | IPS - IPSA - Share Placing Loan Conversion and Financing Update |
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IPS
IPSA
IPS - IPSA - Share Placing, Loan Conversion and Financing Update
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code: IPSA & ISIN: GBOOBOCJ3F01
JSE Share Code: IPS & ISIN: GBOOBOCJ3F01
("IPSA" or "the company")
31 March 2009
IPSA Group PLC
Share Placing, Loan Conversion and Financing Update
As stated in the announcement made on 12 February 2009, IPSA Group PLC ("IPSA"
or "the Company") is providing an update since that date.
Placing
The Company has taken the opportunity to raise GBP320,400 before expenses
through the placing of 2,002,500 new ordinary shares of 2 pence each ("Ordinary
Shares") to investors at a price of 16 pence per share (the "Placing Shares")
and has also converted GBP550,000 of existing loan from Independent Power
Corporation PLC ("IPC") into 3,437,500 Ordinary Shares (the "Loan Conversion
Shares"). The total number of Ordinary Shares to be issued through the Placing
Shares and Loan Conversion Shares is 5,440,000.
The Directors of the Company have subscribed for 58,750 Placing Shares
representing GBP9,400. As a result of the issue of these Placing Shares to
certain Directors and the Loan Conversion Shares, the shareholdings of the
following directors and IPC is:
Number of new Resultant Percentage of
Ordinary shareholding total voting
Shares rights
subscribed
Michael Cox 40,000 40,000 0.04%
Elizabeth 18,750 1,268,750 1.34%
Shaw (1)
IPC (2) 3,437,500 3,437,500 3.61%
(1) Elizabeth Shaw`s subscription is on behalf of her daughter who is a minor,
and therefore is a related party under the AIM Rules
(2) IPC is 89.9 per cent owned by Peter Earl, Chief Executive of IPSA
The Placing Shares and the Loan Conversion Shares will rank pari passu with the
existing ordinary shares of the Company. Application has been made to AIM and
ALTx and it is anticipated that trading of the new Ordinary Shares will
simultaneously commence on AIM and ALTx on 6 April 2009. ALTx is the
alternative exchange of the JSE Limited in South Africa. The Company`s total
issued shared capital following the admission of the new Ordinary Shares, and
therefore the total number of voting rights in IPSA, will be 95,004,081.
The placing is conditional on admission of the new Ordinary Shares to AIM and
ALTx.
Short term financing
The issue of Placing Shares will provide approximately GBP300,000 of net
proceeds to be used as working capital within the Company. The placing enables
IPSA to settle partially the outstanding amounts due to Standard Bank in respect
of its most recent interest payment. The Board is currently exploring its
working capital options and the opportunity to restructure the Company`s balance
sheet or that of its wholly-owned subsidiary, Newcastle Cogeneration Pty
Limited, by way of, inter alia, a further equity fundraising or other
alternative financing structures during 2009 to enable the Company to carry out
its power plant development programme in South Africa.
Additionally, IPC has agreed today to make GBP50,000 of further loan facility
available to IPSA and has indicated its continued provisional willingness to
consider making further loans to the Company in due course. IPC is a company
controlled by Peter Earl (Chief Executive) and of which James West (None
Executive) and Elizabeth Shaw (Chief Operating Officer) are directors.
Following the partial loan conversion, the balance due to IPC is GBP531,000 with
an additional GBP50,000 available to be drawn down. The loans are payable on
demand, and are on commercial terms.
Newcastle co-generation plant
The Company is still anticipating an imminent announcement by Eskom of the
outcome of IPSA`s tender under Eskom`s Medium Term Power Purchase Programme
("MTPPP"), which was due to have been determined by 31 March, 2009.
For further information contact:
Peter Earl, CEO, IPSA Group PLC: +44 (0)20 7793 5615
Elizabeth Shaw, COO, IPSA Group PLC: +44 (0)20 7793 5615
John Llewellyn-Lloyd / Sunil Sanikop, Noble & Company Ltd:
(Nominated Adviser and Joint Broker) +44 (0)20 7763 2200
Allan Piper, Tavistock Communications (UK PR Advisers): +44 (0)20 7920 3150
Dino Theodorou, PSG Capital (Pty.) Limited: +27 (11) 797 8400
(South African Sponsors)
Sugitha Naidoo, College Hill (South African PR Advisers):
+27 (11) 447 3030
Or visit IPSA`s website: www.ipsagroup.co.uk
Date: 31/03/2009 17:06:13 Produced by the JSE SENS Department.
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