Tesco Software > Formjet Plc issue of equity Formjet, the AIM listed alternative software vendor, is pleased to announce that it has conditionally raised £1.25 million before expenses by a placing of 41,666,667 new ordinary shares (the "Placing Shares") at 3p per ordinary share (the "Placing Price"). Following the announcement on 2 October of its unique tie up with Tesco to provide them with a range of Tesco branded products, the Company believes it is prudent to strengthen its balance sheet to support the potential major sales opportunities that may arise on the back of this contract. Corporate Synergy Plc, as agent for the Company, has placed the Placing Shares at the Placing Price with institutional and other investors, subject to the Placing Shares being admitted to trading on AIM. The Placing Price represents a discount of 22.6 per cent. to the closing mid market price of 3.875p on AIM as at 17 October 2006, the date prior to the publication of this announcement. The Placing Shares will, when issued and fully paid, rank pari passu in all respects with the existing issued ordinary shares of the Company. Tony Lee and Simon Hallworth, directors of the Company, are both subscribing for 116,667 Placing Shares, giving them interests of 0.09 per cent of the issued share capital as enlarged by the Placing Shares. Application has been made for the Placing Shares to be admitted to trading on AIM and trading in the Placing Shares is expected to commence on 24 October 2006. Following admission to the Placing Shares, the Company will have 129,773,025 ordinary shares in issue. Lyndon Chapman, C.E.O., commented: "We are delighted to have raised the new monies which will help the Company to grow following recent contract wins. Formjet now has a strong balance sheet to support future opportunities and the fact that its Directors have increased their shareholdings demonstrates their confidence in the Company's prospects." More Press Releases From Formjet
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