Company Announcements

Proposed Placing to raise £8.0 million and Notice of General Meeting

Wednesday, March 19, 2014


19 March 2014

AIM: SGM

Sigma Capital Group plc

("Sigma" or “the Group”)

 

Proposed Placing to raise £8.0 million and Notice of General Meeting

 

To view the full announcment click here

 

Sigma, the residential and urban regeneration specialist, today announces that it has raised £8.0 million before expenses through an oversubscribed placing of ordinary shares by N+1 Singer (the “Placing”). 

 

The Placing will allow Sigma to capitalise on its early mover advantage in the rented residential sector and to successfully execute large scale development opportunities. These opportunities already have support from local and national government to address the need for new homes in the UK’s private rented sector. The Directors believe the Placing will also strengthen Sigma’s balance sheet and give Sigma’s key relationships (UK Government, the GLA, other local authorities and housebuilders etc) confidence in the Company’s ability to deliver large-scale housing development opportunities.

 

The Placing will be effected by the issue of 11,428,571 new ordinary shares of 1p each (“the Placing Shares”) conditionally placed with existing and new institutional investors at a price of 70p per Placing Share, a discount of 6.7% to the closing price of 75 pence on 18 March 2014.

 

The Placing is conditional on shareholder approval.

 

Graham Barnet, Chief Executive of Sigma said:

 

“This share placing helps to support Sigma’s growth ambitions and I am delighted that it has been so well supported by both existing and new shareholders. 

There is an urgent need for new homes in the UK and we believe that Sigma is very well positioned to assist in the delivery of substantial numbers of new homes.  We have been working on our innovative funding model to support this over the last three years, aided by our local authority partners in particular.  Now we have moved closer to seeing first fulfilment through our Joint Venture with Gatehouse Bank plc.  Once bank financing is in place, our proposed initial roll-out of new homes can begin.” 

A circular containing a Notice of General Meeting of the Group (the “Circular”), convened for 10.00 am on 22 April 2014, has today been sent to Shareholders of the Company outlining the terms of the Placing and seeking Shareholder approval to enable the Directors to allot the New Ordinary Shares in connection with the Placing,

 

 

Enquiries

 

Company website: www.sigmacapital.co.uk

 

Sigma Capital Group plc

Graham Barnet, Chief Executive

T: 0131 220 9444

 

Marilyn Cole, Finance Director

 

 

 

 

KTZ Communications

Katie Tzouliadis/ Deborah Walter

T: 020 3178 6378

 

 

 

N+1 Singer

James Maxwell/ Nick Donovan

T: 0207 496 3000

 

 


 

DISCLAIMER

N+1 Singer Advisory LLP, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as nominated adviser and broker to the Company in connection with the matters described in this announcement. Persons receiving this announcement should note that N+1 Singer Advisory LLP will not be responsible to anyone other than the Group for providing the protections afforded to clients of N+1 Singer Advisory LLP or for advising any other person on the arrangements described in this announcement. N+1 Singer Advisory LLP has not authorised the contents of, or any part of, this announcement and no liability whatsoever is accepted by N+1 Singer Advisory LLP for the accuracy of any information or opinions contained in this announcement or for the omission of any information.

The Placing Shares will not be registered under the United States Securities Act of 1933 (as amended) or under the securities laws of any state of the United States or qualify for distribution under any of the relevant securities laws of Canada, Australia or Japan nor has any prospectus in relation to the New Ordinary Shares been lodged with or registered by the Australian Securities and Investments Commission. Accordingly, subject to certain exceptions, the New Ordinary Shares may not be, directly or indirectly, offered, sold, taken up, delivered or transferred in or into the United States, Canada, Australia or Japan. This announcement is directed and issued only to the shareholders of Sigma and their representatives and shall not be distributed to or used by any other person. Overseas shareholders and any person (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward this announcement to a jurisdiction outside the United Kingdom should seek appropriate advice before taking any action.