Results of Placing and Subscription
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014.
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, JAPAN, NEW ZEALAND, OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFERING OF SECURITIES FOR SALE IN THE UNITED STATES OF AMERICA AND NO SECURITIES HAVE BEEN OR WILL BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION IN THE UNITED STATES OF AMERICA.
UNLESS OTHERWISE INDICATED, CAPITALISED TERMS IN THIS ANNOUNCEMENT HAVE THE MEANINGS GIVEN TO THEM IN THE PLACING AND SUBSCRIPTION ANNOUNCEMENT (AS DEFINED BELOW).
For immediate release
25 June 2019
BATM Advanced Communications Limited
("BATM" or the "Company" or the "Group")
Results of Placing and Subscription
BATM raises US$18 million from existing and new investors
BATM (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce the successful completion of the Placing and Subscription (the "Fundraise") announced on 24 June 2019 (the "Placing and Subscription Announcement") to raise US$18 million.
Shore Capital Stockbrokers Ltd ("Shore Capital") acted as sole bookrunner in connection with the Placing. Rosario Capital Ltd and its subsidiaries ("Rosario") acted as the Company's adviser solely in relation to the Subscription by certain institutional and other investors based in Israel.
· The Company has raised, in aggregate, gross proceeds of US$18 million at a price of 42.5 pence per New Ordinary Share (the "Issue Price").
· Pursuant to the Fundraise, a total of 33,283,254 New Ordinary Shares will be issued, representing 7.6 per cent. of the Company's enlarged share capital.
· The Issue Price represents a discount of 5.6 per cent. to the mid-market closing price of the Company's Ordinary Shares on the London Stock Exchange on 24 June 2019, being the last practicable dealing day prior to the Placing and Subscription Announcement.
· The net proceeds of the Fundraise are expected to be utilised as follows:
o Networking & Cyber division (approx. 90% of funds raised):
§ potential acquisition opportunities;
§ acceleration of current network function virtualisation ("NFV") development projects with Arm;
§ new product and use case development for 5G (MEC);
§ completion of development of CyberGuard product for NFV use cases;
§ accelerating proof-of-concepts and working capital for existing NFV and cyber products; and
§ marketing and sales initiatives.
o Bio-Medical division (approx. 10% of funds raised):
§ acceleration of current development, deployment and certifications (including patents) in molecular biology diagnostics; and
§ acceleration of agri-waste and pharma-waste treatment installations.
Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on the premium segment of the Main Market. It is expected that Admission will become effective at 8.00 a.m. on 1 July 2019. The New Ordinary Shares shall rank pari passu with the existing Ordinary Shares in the Company.
Total Voting Rights
Following Admission of the 33,283,254 New Ordinary Shares, the Company's issued share capital will consist of 437,129,074 Ordinary Shares with voting rights and that figure may be used by shareholders in the Company 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, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Dr Zvi Marom, CEO of BATM, said: "We are delighted to have raised $18 million through the successful completion of this fundraising. We thank our existing investors for their support and welcome our new shareholders. This is an exciting time for BATM with great progress being made across our business units, and particularly with our NFV activities and molecular diagnostics. We look forward to utilising these funds to accelerate our growth and to delivering value for our shareholders."
BATM Advanced Communications
Dr Zvi Marom, Chief Executive Officer
+972 9866 2525
Moti Nagar, Chief Financial Officer
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Shore Capital Stockbrokers
Mark Percy, Anita Ghanekar, James Thomas
+44 20 7408 4050
Rosario Capital Ltd
Nadav Raban, Tamar Cohen
+972 3693 1999
Harry Chathli, Claire Norbury, Joe Quinlan
+44 20 7618 9100
Market Abuse Regulation
This announcement is released by BATM Advanced Communications Limited and contains inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of BATM Advanced Communications Limited was Dr Zvi Marom, Chief Executive Officer.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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