ECSC Group PLC - Placing to raise £0.5 million
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the
("ECSC" or the "Company" or the "Group")
Placing to raise
ECSC (AIM: ECSC), the provider of cyber security services, is pleased to announce a placing of 909,091 new ordinary shares of 1 penny each in the Company ("Placing Shares") at a price of
· The Placing was subscribed to by both new and existing investors.
· The Company intends to use the net proceeds of the Placing as follows:
- to ensure the Company is sufficiently well capitalised to take advantage of longer-term growth opportunities once the COVID-19 situation stabilises; and
- to strengthen the balance sheet amidst the uncertainty caused by the COVID-19 pandemic in order to reassure clients.
· The Placing utilises the Company's existing authority to issue new ordinary shares for cash on a non-pre-emptive basis.
Background to and reasons for the Placing
As highlighted in the Company's recently published annual report and accounts for the year ended
One of the impacts of COVID-19 has been a move to more remote and cloud-based working by organisations which the Directors believe will lead to an increased need for cyber security. The Board therefore consider it appropriate to undertake the Placing at the current time in order to strengthen the Company's balance sheet and provide the Company with the resources to ensure it is sufficiently well capitalised to take advantage of these longer-term opportunities.
Details of the Placing and admission to AIM
The Company has raised
The Placing Shares, when issued and fully paid, will rank pari passu in all respects with the existing ordinary shares of 1 penny each of the Company in issue and therefore will rank equally for all dividends or other distributions declared, made or paid after the issue of the Placing Shares on Admission (as defined below).
Application will be made to the
Total Voting Rights
Following Admission, the Company will have 10,007,588 ordinary shares of 1 penny each in issue, each with one voting right. There are no shares held in treasury. Therefore, the Company's total number of ordinary shares and voting rights is 10,007,588. This figure may be used by shareholders from Admission 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 Company under the
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For more information please visit the following: https://investor.ecsc.co.uk/
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Notes to Editors
Established in 2000, ECSC operates from two Security Operations Centres (SOCs), one in the
The senior management team has over 80 years' combined experience within the Company, and has delivered consecutive organic growth for the last 20 years.
ECSC's client list ranges from e-commerce start-ups to global organisations, and the Company counts 10 per cent. of the
Information to Distributors
Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, investors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; Placing Shares offer no guaranteed income and no capital protection; and an investment in the Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing and Subscription. Furthermore, it is noted that, notwithstanding the Target Market Assessment, only investors who have met the criteria of professional clients and eligible counterparties have been procured. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Placing Shares.
This information is provided by RNS, the news service of the
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Market Cap: £6.5 m
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