Trevor Brown, CEO of Remote Monitored Systems plc, commented “The funds raised will be utilised to promote the continuing growth of both of our operating businesses. The significant participation of the Board in the fundraise is an eloquent statement about our confidence in the future.”
We expect 2019 to be a period of strong growth for our two operating businesses, Geocurve and Gyrometric, and this Placing provides the resources necessary to fund that growth. Our objective remains to minimise dilution and maximise growth in shareholder value by controlling costs and focusing investment on growing our sales teams whilst we continue to seek further opportunities to enhance shareholder value.”
Remote Monitored Systems plc (LON:RMS), the AIM quoted survey, inspection and monitoring company, today announced the successful completion of a placing to raise £350,000 to support the growth of the Company’s core areas of business, to provide working capital, and to leave the Company free of debt once the final payment for the Pegasus equipment is made in March.
Placing
A total of 53,846,154 ordinary shares of 0.2p nominal value each (“Placing Shares”) have been placed with investors at 0.65p per share, a discount of approximately 10% to the closing mid-market price on 10 January 2019. The Placing Shares are due to be admitted to trading on or around 17 January 2019 with dealing commencing at 8:00 am.
Directors’ Participation in the Placing
Nigel Burton, non-executive Chairman of the Company, has subscribed £100,000 for 15,384,615 Shares. Following the issue of the Placing Shares, Nigel Burton will have a beneficial interest in 26,098,900 Shares representing approximately 6.8% of the enlarged issued share capital and total voting rights of the Company.
Trevor Brown, Executive Director of the Company, has subscribed £100,000 for 15,384,615 Shares. Following the issue of the Placing Shares, Trevor Brown will have a beneficial interest in 88,241,757 Shares representing approximately 22.8% of the enlarged issued share capital and total voting rights of the Company.
Related Party Transaction
Nigel Burton and Trevor Brown, as Directors of the Company, are considered to be “related parties” as defined under the AIM Rules and accordingly, their participation in the Placing constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.
The Director independent of the Placing, being Paul Ryan (Non-Executive Director), considers, having consulted with the Company’s nominated adviser, that the terms of Nigel and Trevor’s participations in the Placing are fair and reasonable insofar as the Company’s shareholders are concerned.
Total Voting Rights
Following the issue of the Placing Shares as described above totalling 53,846,154 ordinary shares, the issued share capital of the Company will consist of 386,313,844 ordinary shares. No shares were held in treasury at the date of this announcement. The total current voting rights in the Company are therefore 386,313,844.
