Subscription for new A-Shares in subsidiary
Turbo Power Systems Inc ("TPS", the "Company" or the "Group"), a leading UK based designer and manufacturer of innovative power solutions, is pleased to announce that two existing holders of A-Shares in the Company's subsidiary, Turbo Power Systems Limited ("TPSL") ("A-Shares" and "A-Shareholders"), have conditionally agreed to subscribe for an aggregate of 444,444,444 new A-Shares in TPSL at a price of 0.45 pence per A-Share to raise £2 million of new financing for the Group (the "Subscription").
As set out in recent announcements, the directors of the Company (the "Directors") have extensively explored options for addressing the Company's financial constraints and to secure further working capital to support the Company's growth prospects. The Directors believe that the Subscription, split equally between two existing A-Shareholders, Argun Investments Limited and Island Investments (Securities) Limited, being at a premium of over 80% to the Company's closing share price on 30 May 2012, is the most appropriate means of securing further financing at this time.
James Pessoa, Chairman, said: "We are delighted and encouraged that existing A-Shareholders are signalling their continuing support for TPS. The capital raised by this subscription will be used to support the growth of the business, which we continue to believe has strong prospects".
The Directors consider, having consulted with finnCap Ltd, the Company's nominated adviser, that the terms of the Subscription being entered into are fair and reasonable insofar as the Company's shareholders are concerned.
Details of A-Shares
The A-Shares are a class of non-voting share capital in TPSL and are exchangeable, upon no less than 61 days' written notice to the Company from A-Shareholders, into common shares in the Company. The A-Shares will not be listed on any stock exchange. In the event of winding up of TPSL, holders of A-Shares have a preferential right to receive an aggregate of £500,000 to be divided among the holders of the A-Shares on a pro rata basis, and shall not be entitled to any further distribution of the assets of TPSL. A summary of further rights associated with the A-Shares are set out in Schedule C of the Company's circular to Shareholders dated 20 October 2006 and available at the Company's website at https://www.turbopowersystems.com/uploads/assets/investor-centre/special-meeting-oct-20.pdf.
Following the Subscription, there will be 892,777,778 A-Shares in issue. Should all A-Shareholders give notice to exchange their A-Shares into common shares of the Company, 892,777,778 new common shares of the Company would be issued, representing 21.1% of the enlarged issued share capital of the Company.
Enquiries:
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Turbo Power Systems Inc
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Tel: +44 (0)20 8564 4460
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Peter Brown, Chief Executive Officer
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Kreab Gavin Anderson (financial public relations)
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Tel: +44 (0)20 7074 1800
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Robert Speed / Georgia Lewis
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finnCap (NOMAD, broker and financial advisor)
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Tel: +44 (0)20 7220 0500
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Marc Young/ Henrik Persson
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This information is provided by RNS
The company news service from the London Stock Exchange