Park Group plc("Park" or "the Company")
PARK RAISES £4.41 MILLION TO FUND NEXT PHASE OF GROWTH
Placing of 8.4 Million New Ordinary Shares at 52.5 pence
Park (AIM: PKG.L), the UK's leading gift voucher and prepaid gift card provider, today announces that Arden Partners plc has, on behalf of the Company, placed 8.4 million new ordinary shares of 2p each ("New Ordinary Shares") at a price of 52.5p ("Placing Price"), to raise approximately £4.41 million before expenses (the "Placing"). The Placing was well supported by new and existing shareholders.
Use of Proceeds
The proceeds of the Placing will be used to fund a number of organic growth opportunities including:
· the expansion of flexecash® in the UK and Ireland;
· expansion of the Company on-line trading systems; and
· organic expansion into Europe.
The placing proceeds will also be used for additional working capital, investment in web, IT and infrastructure.
Commenting on the Placing Chris Houghton, CEO said: "We are really pleased that so many investors have understood and backed the next phase of our growth strategy. The funds raised will be put to work to help us expand flexecash ® in the UK and Ireland. Great progress has already been made, but there are new expansion opportunities to strive towards.
He added: "As I commented in our recent results statement, social media and online developments are transforming operations. Customers are increasingly managing their relationship with Park through our range of websites and customer acquisition and direct on-line business is also increasing year on year. Online sales rose by 24% last year, so it is paramount that as sales grow there needs to be further investment in web, IT and infrastructure.
"Finally, our experience in the Republic of Ireland, where we have learnt a vast amount since 2010, has led us to believe that there are opportunities in other overseas territories. In Ireland we have introduced a Euro denominated Love2Shop voucher and flexecash ® is also about to launch. We have already commissioned market research that has looked at opportunities and competition in the gift voucher and pre paid gift card market and management believe that this model can be expanded further into Europe.
"These are exciting times for all involved with Park, as we continue to implement our strategy for the Company."
Arden Partners plc has placed 8.4 million New Ordinary Shares on behalf of the Company with institutional and other investors. The Placing is conditional, inter alia, upon Admission and will raise approximately £4.41 million, before expenses.
Application will be made for the New Ordinary Shares issued pursuant to the Placing to be admitted to trading on AIM and it is anticipated that Admission will become effective and that dealings will commence on 21 June 2013.
The New Ordinary Shares will, when issued, rank equally in all respects with the existing ordinary shares and will represent approximately 4.7% per cent. of the enlarged issued share capital of the Company immediately following Admission.
Following the Placing the Company will have 177,752,475 ordinary shares in issue. This 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 a change to their interest in Park Group plc, under the Disclosure and Transparency Rules.
Park Group plc
Arden Partners plc
Tel: 0151 653 1700
Tel: 020 7614 5920
Tel: 020 7920 3150