Welney Plc : Completion of Disposal; Shareholding in the Company Thomson Reuters

Welney Plc

("Welney" or the "Company")

Completion of Disposal; Shareholding in the Company

On 2 June 2015, Welney announced that the Company was in advanced discussions regarding the proposed disposal of its interests in Aircraft Recycling Ltd ("ARL") and Blaze and Barney Ltd ("B&B") (the "Disposal"). The Directors of Welney are pleased to announce that the Disposal has now been completed.

The Company acquired a 30% interest ARL and the issued share capital of B&B, whose sole business was the operation of a horizontal baling machine for recycling, in February 2014. The total consideration for these acquisition involved the payment of GBP 230,000 in cash to the vendors of the businesses (the "Vendors") and the issue of 234,500,000 ordinary shares in the Company at an agreed value of GBP 58,625.

As previously announced, it became clear to the Directors towards the end of 2014 that the operation of the baling machine was not going to be commercially viable for the Company. At around the same time, the Directors became aware that the funds required to develop ARL's recycling business could not be raised. In addition, the contract that ARL was expected to fulfil with a major airline was never started.

The Directors therefore resolved to dispose of the Company's interests in ARL and B&B and focus the Company's business on the recycling of rubber and plastics.

In connection with the Disposal:

  • Hugs General Trading LLC ("HGT") has acquired the 234,500,000 ordinary shares in the Company originally issued to the Vendors; following this acquisition, HGT is interested in shares representing 15.17 per cent of the Company's issued share capital and the Vendors no longer have any interest in the Company; and
     
  • The Vendors have agreed to acquire B&B and the Company's interest in ARL for a consideration of GBP 50,000 which has been paid to the Company in cash.

             
The proceeds of the Disposal will be used as additional working capital for the Company.

Welney also announces that Peterhouse Corporate Finance Limited has given notice of its intention to resign as the Company's ISDX Corporate Adviser, such notice to expire on 30 June 2015. The Company is in discussions with a replacement ISDX Corporate Adviser and expects to make a further announcement in due course.

The Directors of the Company accept responsibility for the contents of this announcement.

--ENDS--
Enquiries:

Welney Plc
Cameron Luck
Tel:  +353 (0)861734543

Peterhouse Corporate Finance Limited
Fungai Ndoro and Mark Anwyl
Tel:  020 7469 0930      




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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Welney Plc via Globenewswire

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