On 20 October 2016, the Company announced that it had placed 92,333,332 shares at a price of 1.5p per share, raising in total £1,385,000 of gross proceeds. These shares were admitted to trading on AIM on 31 October 2016.
On 9 November 2016:
the Company announced that £1,250,000 of the gross proceeds remained outstanding from a placee sourced by the Company (the “Company Placee”); and
the Company’s broker was in receipt of the £135,000 balance of the gross proceeds in relation to the remaining placees (the “Broker Placees”).
Since the 9 November 2016 announcement, the Company’s broker, at their request and with approval from the Company, returned the sum of £135,000 to the Broker Placees. The Company and the Company’s broker have been in communication with the Broker Placees regarding the £135,000 and discussions are ongoing.
Nevertheless, the Company has received a legal opinion that the 92,333,332 October 2016 placing shares were validly allotted and issued.
The Company intends to pursue the Company Placee for the outstanding proceeds.
The Company is seeking to undertake a new placing (the “New Placing”) which, as a result of the share price movement since the 20 October 2016, is likely to be at a price below 1.5p per share. It is intended that the Broker Placees will be offered the opportunity to participate in the New Placing on revised terms.
The Company anticipates making a further announcement in relation to the New Placing shortly, however there can be no certainty that the New Placing will occur or that other forms of financing will be available to the Company.
The Company has limited cash resources and continues to manage its working capital position carefully.
The issued share capital of the Company comprises 885,734,741 ordinary shares.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further information:
|Milestone Group PLC|
|Deborah White, Chief Executive||Tel: 0207 929 7826|
|Cairn Financial Advisers LLP, Nominated Adviser|
|Liam Murray/Sandy Jamieson||Tel: 0207 213 0880|
|Hybridan LLP, Broker|
|Claire Louise Noyce||Tel: 0203 764 2341|
|Walbrook PR Limited, PR|
|Gary Middleton/Paul Cornelius/Paul Whittington||Tel: 0207 933 8780|