PRESSURE TECHNOLOGIES PLC
(“PRESSURE TECHNOLOGIES” OR THE “COMPANY“)
PROPOSED PLACING AND RETAIL OFFER TO RAISE UP TO £2.5 MILLION
BOARD CHANGE
Pressure Technologies plc, (AIM: PRES), the specialist engineering group, is pleased to announce a proposed placing, via an accelerated bookbuild, of New Ordinary Shares of 5 pence each in the capital of the Company.
The Placing will be conducted at a price of 30 pence per share in order to raise up to £2.0 million (before expenses). The Placing will comprise up to 6,666,666 new Ordinary Shares, representing approximately 21.46 per cent of the existing issued share capital of the Company.
In addition to the Placing, there will be an offer made by the Company of new Ordinary Shares on the Peel Hunt Retail Capital Markets REX portal at the Issue Price to raise up to £0.5 million (before expenses) to provide existing retail shareholders in the United Kingdom with an opportunity to participate in the Company’s fundraising plans. A separate announcement will be made shortly regarding the Retail Offer and its terms. For the avoidance of doubt, the Retail Offer is not part of the Placing .
Capitalised terms used in this announcement (including the appendix (the “Appendix” and together, this “Announcement“)) have the meanings given to them in the section headed “Definitions” at the end of this Announcement, unless the context provides otherwise.
Singer Capital Markets is acting as nominated adviser, bookrunner and broker to the Company in relation to the Fundraising. Peel Hunt LLP is acting as Pressure Technologies’ co-ordinator in relation to the Retail Offer.
Singer Capital Markets will commence a bookbuilding process in respect of the Placing immediately following the publication of this Announcement.
Highlights
â— Proposed Placing and Retail Offer to issue up to 8,333,332 new Ordinary Shares at the Issue Price, raising up to £2.5 million (before expenses).
â— The net proceeds of the Placing and Retail Offer will be used:
o Provide working capital headroom to support material purchases and other supplier payments for existing defence, offshore and hydrogen contracts, which are expected to be delivered in 2023;
o Provide a bridge to profitable, cash-generative trading and the commencement of major defence contracts in FY23; and
o Strengthen the Group’s balance sheet
â— The Placing will be conducted by way of an accelerated bookbuild process by Singer Capital Markets.
â— The Placing is subject to the terms and conditions set out in the Appendix
â— Certain of the directors of the Company have indicated their intention to subscribe for, in aggregate, £60,000 in the Placing
â— The Placing and Retail Offer are conditional upon the approval by the Company’s shareholders of the Resolutions at the general meeting of the Company’s shareholders to be held at 11:00 a.m. on 2 December 2022 at the offices of Singer Capital Markets, 1 Bartholomew Lane, London EC2N 2AX.
â— The Issue Price of 30p represents a discount of approximately 6.25 per cent. to the closing middle market price of 32 pence per Ordinary Share on 14 November 2022, being the latest practicable date prior to the publication of this Announcement.
Board Change
The Board today announces that James Locking intends to step down from his role as Chief Financial Officer (CFO). James will remain on the Board until 3 February 2023 and will support the Group in ensuring the completion of ongoing projects, including the FY22 Audit, and a smooth transition.
The Board would like to thank James for his contribution and service to the business over the past four years and wishes him every success for the future.
A recruitment process for James’ replacement has commenced.
For further information, please contact:
| Pressure Technologies plcChris Walters, Chief ExecutiveJames Locking, Chief Financial Officer | Tel: 0330 015 0710 PressureTechnologies@houston.co.uk |
| Singer Capital Markets (Nomad and Broker)Mark Taylor / Asha Chotai | Tel: 0207 496 3000 |
| Houston (Financial PR and Investor Relations)Kay Larsen / Ben Robinson |