Blue Star Capital plc (LON:BLU), the investing company with a focus on technology and its applications within media and gaming, has today announced that it has conditionally placed 178,571,429 new ordinary shares in the Company (the “Placing Shares”) at a price of 0.28 pence per share (“Placing Price”) raising gross proceeds of £0.50 million (“Placing”).
The Placing was oversubscribed and the Placing Price represents a 6.67% discount to the Company’s closing price of 0.3p on 23 October 2017.
The net proceeds of the Placing of approximately £0.47 million will be used for general working capital purposes and to support existing investee companies where needed and should give Blue Star flexibility to look at new investment opportunities in the future. Issue of the Placing Shares is conditional on receipt of funds and Admission (as defined below).
Pursuant to the Placing, application will be made for 178,571,429 Placing Shares to be admitted to trading on AIM (“Admission”). Subject to completion of the Placing, it is anticipated that admission of the Placing Shares will occur at 8.00 a.m. on or around 27 October 2017. The Placing Shares will be credited as fully paid and rank pari passu with the existing ordinary shares. Following Admission, the Company’s enlarged issued share capital will comprise 1,881,471,741 ordinary shares and the Company does not hold any shares in treasury.
The Company also announces that as part of the Placing, Tony Fabrizi, CEO of the Company, has subscribed for 5,000,000 ordinary shares in the Company at the Placing Price of 0.28p per ordinary share. Following Admission, Mr Fabrizi will be interested in 30,000,000 ordinary shares in aggregate, representing approximately 1.6 % of the Company’s enlarged issued share capital.
The subscription for Placing Shares by Tony Fabrizi, constitutes a related party transaction under the AIM Rules. With the exception of Mr Fabrizi, who is involved in the transaction as a related party, its directors consider, having consulted with the Company’s Nominated Adviser, Cairn Financial Advisers LLP, the terms of this transaction to be fair and reasonable in so far as Shareholders are concerned.
