TIDMFLX
RNS Number : 4527L
Falanx Group Limited
03 October 2016
Falanx Group Limited ("Falanx" or "the Company")
Placing of GBP0.75 million
and
Early Redemption of Loan Note
Falanx Group (AIM:FLX) announces on 3rd October 2016 the placing
("Placing") of new ordinary shares of no par value in the capital
of the Company ("Ordinary Shares") raising total gross proceeds of
GBP0.75 million and the immediate repayment of senior unsecured
zero coupon convertible loan notes ("Loan Notes").
Placing
On 30 Sept 2016, Falanx agreed to place 18,750,000 of new
Ordinary Shares following an unsolicited approach by Turner Pope
Investments on behalf of their clients, at a price of 4 pence per
Ordinary Share, raising gross proceeds of GBP750,000. No Warrants
are attached to this Placing. Turner Pope Investments will receive
468,750 Ordinary Shares as Fees, which are subject to a 6 month
'Lock-in' period from the date of issue.
The total Ordinary Shares to be issued pursuant to the Placing
represent approximately 18.20% of the Company's existing issued
share capital and will represent, in aggregate, approximately 15.4%
of the Company's enlarged issued share capital.
Early Redemption of Loan Notes
Falanx will use proceeds from the Placing to fund the redemption
of the Loan Notes issued to Darwin Capital Limited on 5 May 2016
and provide further working capital for the Company.
The Loan Notes, which carry a fixed and floating senior charge
over the assets of the Company, fall due for redemption on 5
November 2016 ("Redemption Date") in the sum of GBP495,000
("Principal Amount") will be redeemed immediately in cash.
Repayment of Loan Notes - further terms
Under the term of the loan, the Company can redeem the Loan
Notes for cash at any time prior to the Redemption Date of 5
November 2016, in which case the Company may elect to cancel or
enforce exercise of half of the Warrants issued to the Loan Note
Holder.
The Company has elected, under these terms, to cancel half of
the Warrants issued to the Loan Note Holder.
Admission of the new Ordinary Shares to trading on AIM
Application will be made for admission of the 19,218,750 new
Ordinary Shares to be issued pursuant to the Placing to trading on
the AIM Market of the London Stock Exchange, which is expected to
take place on or around 8.00 a.m. on 10(th) October 2016
("Admission"). The Placing is conditional on Admission becoming
effective. The new Ordinary Shares will, when issued, be credited
as fully paid and will rank equally in all respects with the
existing Ordinary Shares, including the right to receive any
dividend or other distribution declared, made or paid after
Admission.
Following Admission, the Company's enlarged issued share capital
will comprise 124,830,904 Ordinary Shares carrying one vote per
share. The Company does not hold any Ordinary Shares in
treasury.
Chairman of Falanx, Mike Read said:
"I am delighted to announce this placing at the market price and
the repayment of the convertible loan. We are grateful to Darwin
Capital Limited for providing the loan to assist us in the
acquisition of ASC. When Turner Pope Investments approached the
company the Board felt the timing was right to repay the loan and
move the business forward on a debt free basis."
Falanx's CEO, John Blamire said:
"Receiving an unsolicited approach to invest in Falanx at the
market price and without the requirement for incentives such as
Warrants or discounts, provides further proof Falanx has turned the
corner as a highly investible business and Cyber Security is an
extremely attractive growth area".
Turner Pope Investments, Director, Ben Turner said:
"We have been observing Falanx for some time and have
historically invested in other successful companies under the
stewardship of Mike Read. Our clients were keen to attain an equity
holding in Falanx but were unable to make the level of investment
they required through the secondary market and so we decided to
approach the company directly. We are extremely pleased Falanx have
accepted our offer and our shareholders look forward to supporting
the growth of this exciting company"
Enquiries:
Falanx Group Limited
John Blamire, Chief Executive
www.falanxgroup.com
www.falanxassuria.com
www.falanxcyberdefence.com + 44 (0) 20 7856 9457
Panmure Gordon (UK) Limited
Nominated Adviser & Broker +44 (0) 20 7886 2500
Andrew Godber / Peter
Steel
Falanx Group Limited, is a global intelligence, security and
cyber defence provider working with blue chip and government
clients. The Group listed on AIM in June 2013 under ticker FLX For
more information: http://www.falanxgroup.com/
Notes to Editors
-- Falanx Group Limited, is a global intelligence, security and
cyber defence provider working with blue chip and government
clients.
-- The Group listed on AIM in June 2013 under ticker FLX.
-- For more information: http://www.falanxgroup.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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