Location Sciences Group PLC Placing to Raise £0.41 Million (3357R)
June 14 2018 - 1:00AM
UK Regulatory
TIDMLSAI
RNS Number : 3357R
Location Sciences Group PLC
14 June 2018
14 June 2018
Location Sciences Group PLC
("Location Sciences" or the "Company")
Placing to raise GBP0.41 million
Location Sciences Group PLC (AIM: LSAI), the leading mobile
location data and intelligence expert, is pleased to announce that
it has raised, in aggregate, GBP412,372 before expenses by way of a
placing of 1,374,574,705 new ordinary shares of 0.01 pence each
(the "Ordinary Shares") (the "Placing") at 0.03 pence per share
(the "Issue Price"). The Placing is conditional on admission of the
new Ordinary Shares to trading on AIM ("Admission").
The Issue Price represents a discount of approximately 13.04 per
cent. to the closing price of 0.0345 pence per share on 13 June
2018, the last business day prior to the date of this announcement,
and a premium of approximately 8.21 per cent. to the Company's
60-day average closing price. The net proceeds of the Placing will
be used primarily to invest in and market the Company's new
location verification product, Verify, and for 2018 working capital
purposes.
Location data is increasingly becoming a mainstream marketing
tool, with advertisers seeking greater transparency from agencies
and publishers as well as alternatives to the walled worlds of
Facebook and Google. This shift in the advertising industry
underlines the market opportunity for Verify, which promotes
transparency across the supply chain and guarantees accurate
independent verification of location data.
The directors of the Company (the "Directors") are pleased to
report that Verify, with its first mover advantage, is already
gaining market traction and the Company's panel of seven million
consumers is proving to be attractive to a wide range of
organisations looking to maximise the impact of their digital
spend.
Following the Placing, the Directors are confident that the
Company now has the platform to seize the exciting opportunity for
location verification, and believe this will become an increasingly
important element of Location Sciences' business as this market
grows in the UK and Europe.
Furthermore, the Directors have conducted a review of the UK's
location data and insights market which has highlighted possible
acquisition opportunities for the Company. Any material acquisition
will be subject to shareholder approval at a general meeting and
will only be progressed if it both solidifies the Company's market
leading position in the UK and improves the underlying financial
performance of the Company.
The Directors are excited about the opportunities in the UK
market and will keep shareholders informed as their strategy
progresses.
Related Party Transaction
Peel Hunt LLP ("Peel Hunt") is participating in the Placing. The
participation of Peel Hunt, a substantial shareholder in the
Company, is a related party transaction per Rule 13 of the AIM
Rules. Accordingly, the Directors, having consulted with Stockdale
Securities Limited, the Company's nominated adviser, consider that
the terms and conditions of Peel Hunt's participation in the
Placing are fair and reasonable insofar as the shareholders of the
Company are concerned.
Application for Admission
Application has been made to the London Stock Exchange for the
admission of the new Ordinary Shares to trading on AIM. It is
expected that Admission will occur and that dealings will commence
at 8.00 a.m. on 19 June 2018 at which time it is also expected that
the new Ordinary Shares will be enabled for settlement in
CREST.
Following Admission, the number of Ordinary Shares in issue will
be 15,120,321,774. This figure may be used by shareholders as the
denominator for the calculations by which they will determine
whether they are required to notify their interests in, or a change
to their interest in, the Company under the Financial Conduct
Authority's Disclosure and Transparency Rules.
Commenting Mark Slade, CEO of Location Sciences, said: "I am
pleased to announce the completion of a successful fundraising to
support the on-going marketing and commercialisation of our Verify
product. It is pleasing that the Placing was over-subscribed and
that the Directors are able to issue the maximum number of shares
authorised by our shareholders. It's important for us to capitalise
on our first mover advantage and with these new funds I am
confident in gaining significant market traction over the coming
months."
End
Enquiries:
Location Sciences Group PLC Via Redleaf Communications
Mark Slade, Chief Executive
Officer
David Rae, Chief Financial Officer
Stockdale Securities Limited Tel: +44 (0)20 7601 6100
Andy Crossley
Tom Griffiths
Ed Thomas
Redleaf Communications Tel: +44 (0) 20 3757 6880
Charlie Geller
Fiona Norman
About Location Sciences Group PLC:
-- Location Sciences helps companies connect the online world
with the offline world using mobile location technology data. We
combine cutting-edge mobile location data collection with
proprietary machine learning analytics to create new value and
insights from location information.
-- Location Sciences is media-agnostic and work with a variety
of media, advertising, technology partners - plus the world's
biggest brands. Our technology is well positioned to fulfil the
need for greater accuracy and accountability in a growing market
that is increasingly looking for superior data and
verification.
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END
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