("Metroelectric" or the "Company")
Investments and Issue of Equity
Further to Metroelectric's announcement of 5 December 2013, the Company is pleased to confirm that it has now exercised its option to buy 10% of the issued share capital of Aircraft Recycling Ltd "(ARL"), the Thetford-based recycler of decommissioned aircraft for a cash payment of £150,000. In addition to this acquisition, the Company has also agreed to purchase a further 20% of ARL from the company's two existing shareholders, Mr Norman Villis and Venus Holdings LLC. The consideration for this acquisition will be satisfied by the issue of 80,000,000 new ordinary shares in Metroelectric, at a price of 0.25p per share, to each of Mr Villis and Venus Holdings LLC. Venus Holdings LLC is a company controlled by Mr Jahangir Mehn.
In addition to the interest in ARL, Metroelectric is pleased to announce that it has agreed to buy the entire issued share capital of Blaze and Barney Ltd ("BBL"). BBL's sole business is the operation of a Harris horizontal baling machine from its base in Kiverton, South Yorkshire; this machine will be used by ARL as part of its aircraft recycling activities. The purchase will be satisfied by £80,000 in cash and the issue of 74,500,000 new ordinary shares in Metroelectric at a price of 0.25p per share to BBL's owner, Mr Andrew Villis.
Following the issue of shares as referred to above, both Mr Norman Villis and Venus Holdings LLC are each interested in 80,000,000 ordinary shares of Metroelectric, representing 5.18% of the enlarged issued share capital of the Company. Mr Andrew Villis is interested in 74,500,000 ordinary shares of Metroelectric, representing 4.82% of the enlarged issued share capital of the Company.
Cameron Luck, a Director of the Company, commented: "With these investments now complete, 'New' Metroelectric has moved even further away from its historic focus on the electric vehicles sector. Shareholders can now look forward to further news on this re-positioning in the very near future".
In accordance with the FCA's Disclosure and Transparency Rules, the Board of Metroelectric confirms that following the above allotment, the Company has 1,545,511,405 ordinary shares of 0.1p in issue carrying voting rights.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in the company under the FCA's Disclosure and Transparency Rules.
The Directors of the Company accept responsibility for this announcement.
Tel: 078 3018 2501
Peterhouse Corporate Finance Limited
Tel: 020 7469 0934
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Source: Metroelectric Plc via Globenewswire