Funds to develop Metropolitan Area Networks, provide working capital
By Melissa Kory
Cleveland, July 25 - Redstone plc announced the conditional private placement of 212 million new ordinary shares to raise £2.65 million.
The shares will be sold at 1.25p per share, an 11.97% discount of the July 25 share closing price of 1.42p.
The placing will provide funds to develop Redstone's Metropolitan Area Networks in Portsmouth and provide working capital to support the company's growth strategy.
The placement is conditional upon the company obtaining approval from its shareholders to grant the board authority to allot the placing shares and to disapply statutory pre-emption rights, which would otherwise apply to the allotment of the placing shares.
A general meeting will be convened on Aug. 9 to consider the resolutions which will give the directors the necessary authorities to allot the placing shares.
The shares will represent 7.4% of the company's enlarged issued share capital immediately following completion of the placing.
London's Redstone provides integrated and converged communications services.
| Issuer: | Redstone plc
|
| Issue: | Ordinary shares
|
| Amount: | £2.65 million
|
| Shares: | 212 million
|
| Price: | 1.25p
|
| Warrants: | No
|
| Pricing date: | July 25
|
| Stock symbol: | London: RED
|
| Stock price: | 1.42p at close July 25
|
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