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28 December 2017 |
(''Ace'' or "the Company'')
Open offer to subscribe for up to
The directors of
The Convertible Notes shall convert into and the Warrants shall be exercisable over ordinary shares of
The Open Offer is subject to subscription of a minimum of
In the event that Open Offer is not fully subscribed, each Qualifying Shareholder will be entitled to apply for additional Convertible Notes under the Excess Application Facility. The number of Excess Convertible Notes for which Qualifying Shareholders may apply is limited to the number that represents the same number of Convertible Notes as those within the Open Offer Entitlement. The entitlement to Excess Notes is subject to the total number of Convertible Notes for which applications are received during the Offer Period not being greater than the maximum of
The shareholder letter sets out the background to and reasons for the Open Offer. The funding will be used to allow the Company to start implementing the strategy to acquire additional properties. The proposals allow Qualifying Shareholders to participate in the fundraising in order for the implementation of this strategy in a cost-effective manner.
Background to and reasons for the Open Offer
The Company has enjoyed substantial growth during the last five years. New equity investment has increased the Company's resources and enabled the purchase of properties with the support of secured loan finance. With the purchase of New Majestic
The Company is in a strong position with a good level of rental income and a portfolio of properties which has potential for a further increase in capital value.
The directors continue to seek out further property purchase opportunities which would be to the Company's advantage if they can be realised. These are now to be found in a higher price range than the existing properties and additional funding by way of equity investment will enable the Company to move into that price bracket.
The directors are conscious of the support provided by shareholders and believe it is right and fair to offer the opportunity to participate at the present time on advantageous terms before further equity investment is sought.
The Board acknowledges the importance of the continuing support of shareholders. The Open Offer also enables all Qualifying Shareholders to participate in the fundraising on a pro rata basis and with the ability to apply for Convertible Notes in addition to their proportionate entitlement.
Accordingly, the Directors believe that an Open Offer is in the best interests of the Company and Shareholders as the funds raised should enable the Company to progress with its strategy to grow the value of the portfolio of investment properties.
Current trading and outlook
The Company has published its results for the year ended
A number of property acquisitions have been announced, notably in Barnstaple, Margate and
The issue of Convertible Notes is to be completed before release of interim results announcement. This is estimated to be
Use of Proceeds
The Company is seeking up to
Information on the Open Offer
Fundraising Structure
The Directors have given careful consideration to the structure of the proposed fundraising and have concluded that the Open Offer is the most suitable option available to the Company and its Shareholders at this time having regard to the importance of pre-emption rights to Shareholders, the composition of the Shareholders, the current share price and the objective of achieving a cost effective and efficient fundraising.
Under the Open Offer, the Company will offer the opportunity to subscribe for up to
Under the Open Offer, the Company will issue warrants to each shareholder who subscribes for offer Convertible Notes to acquire Ordinary Shares at an exercise price of
In the event that all Convertible Notes were converted into Ordinary Shares and all Warrants were exercised, the New Ordinary Shares will represent approximately 20 per cent. of the Enlarged Share Capital.
This would result in a dilution of approximately 20.49 per cent. in aggregate for holders of Existing Ordinary Shares, save to the extent that they subscribe for their Open Offer Entitlement and Excess Open Offer Entitlement.
The latest date and time for acceptance and payment in full under the Open Offer is
The Directors accept responsibility for this announcement.
- Ends -
For further information, please contact:
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Tel: +44 (0) 20 7201 8340 |
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Tel: +44 (0) 20 7251 3762 |
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Tel: +44 (0)203 764 2341 |
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Notes to Editors
Ace is run by a board with extensive property experience, an excellent network of contacts and relevant professional qualifications. This sector expertise has allowed the Board to identify opportunities and act promptly to secure investments.
For more information on the Company please visit www.acelibertyandstone.com
This information is provided by RNS