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Placing of 20,000,000 new Ordinary Shares to raise £1.5 million
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Issue of equity – highlights
- Lombard Risk has raised gross proceeds of £1.5 million through a placing with institutional and other investors.
- Funds to be used to accelerate growth, the recruitment of certain key staff and to provide cash for potential acquisition opportunities.
- Company has appointed Charles Stanley Securities as Nominated Adviser and Broker.
Lombard Risk Management plc (AIM: LRM), a leading global provider of collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce that it has raised £1.5 million (gross) through the successful placing of 20,000,000 new ordinary shares (the “Placing Shares”) at 7.5 pence per share (the “Placing”). The funds have been raised by Charles Stanley Securities from existing and new institutional and other investors.
The net proceeds of the Placing, which are expected to be c.£1.4 million, will be used predominantly to recruit certain key people to accelerate sales and to exploit the Company’s rapidly growing pipeline of opportunities. The new staff are expected to be recruited to support product development, sales and implementation of new product sales.
The placing price of 7.5pence per Placing Share represents a discount of approximately 14.3 per cent. to the Company’s closing mid market price of 8.75 pence on 1 June 2012 being the latest practicable date prior to the announcement of the Placing.
The Placing Shares are being issued utilising the Company’s existing authorities that were approved by its shareholders at the Company’s Annual General Meeting on 13 July 2011.
Application has been made for the Placing Shares to be admitted to trading on AIM (“Admission”). The Placing is conditional inter alia upon Admission. Admission is expected to be effective on 11 June 2012. The Placing Shares will rank pari passu in all respects with the existing issued ordinary shares.
Paul Tuson, Finance Director, has agreed to subscribe for 260,000 Placing Shares in the Placing. Immediately following Admission of the shareholding of the Directors will be:
| Director | Placing Participation | Shareholding following Admission | Percentage holding |
| John Wisbey | - | 102,195,117 | 44.28% |
| Paul Tuson | 260,000 | 1,760,000 | 0.76% |
| Nicholas Davies | - | 441,176 | 0.19% |
| Philip Crawford | - | 590,000 | 0.26% |
| Brian Crowe | - | 5,825,000 | 2.52% |
Following Admission, the Company’s enlarged issued share capital will comprise 230,809,897 ordinary shares with one voting right per share. The Company currently holds 234 Ordinary Shares in treasury, which do not carry voting rights, and therefore the total number of voting rights in the Company is 230,809,663.
This figure of 230,809,663 ordinary shares 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 in their interest in, the share capital of the Company under the FSA’s Disclosure and Transparency Rules.
Commenting on the success of the Placing, Philip Crawford, Chairman of Lombard Risk, said: “We are delighted to have raised this funding and thank our existing shareholders for their continued support and welcome significant new institutional investors who join Lombard Risk, through this Placing, at a very exciting time in the Company’s development. The opportunities for the Company from mandatory regulatory spend on COREP, Dodd-Frank and EMIR are considerable; this Placing will help us to capitalise on those opportunities.”