Remote Monitored Systems plc (LON:RMS), the AIM quoted monitoring, intelligence and security company, has announced the successful completion of a placing, arranged by Peterhouse Capital Limited, to raise £265,000 to support the continuing growth of GyroMetric Limited and Cloudveil Limited, and to provide working capital for the Group.
A total of 106,000,000 ordinary shares of 0.2p nominal value each have been placed with investors at 0.25p per share, a premium of 11.11% of the closing mid‐market price on 10 July 2020. Admission of these new shares to AIM is expected to occur on or around 17 July 2020.
In addition to the Placing Shares, the Company is issuing a further 6,950,000 new ordinary shares, also at the Placing Price, in settlement of certain professional fees due through to 10 July 2020.
Braveheart participation in the Placing
As part of the Placing, Braveheart Investment Group plc (“Braveheart”) has subscribed £200,000 for 80,000,000 shares. Following the issue of the Placing Shares, Braveheart will have a beneficial interest in 199,637,590 Shares representing approximately 25.79% of the enlarged issued share capital and total voting rights of the Company.
Related Party Transaction
Braveheart, as a substantial shareholder of the Company, is considered to be a “related party” as defined under the AIM Rules and accordingly, its participation in the Placing constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.
The Directors independent of the Placing, being Paul Ryan (Non‐Executive Chairman) and John Richardson (Chief Operating Officer) consider, having consulted with the Company’s nominated adviser, that the terms of Braveheart’s participation 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 and Fee Shares as described above totalling 112,950,000 ordinary shares, the issued share capital of the Company will consist of 774,006,790 ordinary shares. No shares were held in treasury at the date of this announcement. The total voting rights in the Company will therefore be 774,006,790.
The above figure of 774,006,790 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
Trevor Brown, Executive Director of Remote Monitored Systems plc, commented “The significant participation of Braveheart, our largest investor, will ensure that the Company has sufficient funds available not only to promote the continuing growth of GyroMetric and Cloudveil, but more importantly, to pursue a number of interesting opportunities that the Directors have identified.”