Drumz plc (LON:DRUM) has announced that its joint broker Peterhouse Capital, has raised £500,000 before expenses through the issue of 90,909,091 ordinary shares of 0.1p each at an issue price of 0.55 pence each. Investors in the Placing will also receive 1 warrant to subscribe for one Ordinary Share for every two Placing Shares, exerciseable at 1.2 pence, for a period of up to 12 months from date of issue.
Angus Forrest, Chief Executive, intends to subscribe for up to 3,636,363 Placing Shares as part of the Placing. This intention is not legally binding and any subscription by Mr Forrest pursuant to the Placing will be announced through a Regulatory Information Service.
Following the Company’s change of investing policy on 30 June 2020 and its subsequent investment in Acuity Risk Management Ltd on 7 September 2020, Drumz has undertaken the Placing to provide additional cash resources to enable the Board to respond quickly to investment opportunities.
The Issue Price represents a premium of 10 per cent compared to the fund raise announced 1 July 2020 and a discount of 4% compared to the closing middle market price of 0.575 pence on 30 September 2020, being the last practicable date prior to the announcement of the Placing. The Placing is not being underwritten and is conditional on admission of the Placing Shares to trading on AIM. The Placing is being conducted pursuant to the existing authorities granted to the Directors of the Company at its general meeting on 30 June 2020. The Placing Shares represent approximately 26.36 per cent. of the Company’s issued share capital as enlarged by the Placing Shares.
Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM (“Admission”) and it is expected that such Admission will occur at 8.00 a.m. on 6 October 2020. The Placing Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Placing Shares, respectively and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares. The Placing Shares are not being made available to the public and are not being offered or sold into any jurisdiction where it would be unlawful to do so.
Following Admission, Drumz will have 344,822,048 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 344,822,048 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.