AssetCo PLC (“the Company”)
Company Update and Proposed Equity Fund Raising
The Company announced on 14 February 2011 that the Directors have been engaged in discussions with various parties with respect to the short term funding needs of the business that have arisen as a result of delays to the refinancing of non-recourse asset financing facilities of the business (the “Refinancing”). The delay has led to a significant strain on the cash resources of the business. Discussions on the injection of short-term funds are continuing with various parties.
The Directors have also received advice from Arden Partners, the Company’s NOMAD and Stock broker concerning the feasibility of an equity fundraising and in the light of this advice, the Company has decided to approach investors and shareholders in order to raise up to £8 million as soon as possible.
As previously announced, the Company will still proceed with the Refinancing to strengthen further the working capital available to the business. It is planned that the Refinancing will release an additional sum of approximately £8.5 million of capital (net of fees and the cost of interest rate hedges).
The Directors believe that with the cooperation of the Company’s creditors and banks, the current financial strain on the Company will be temporary, and the additional funding resources referred to above will ensure that a more appropriate capital structure will be in place to support the future growth of the business. The Directors are grateful for the support of all stakeholders through this period, reflecting the vital nature of support services provided. The Company is in advanced discussions in relation to additional contracts in the Middle East and elsewhere, which it expects to be in a position to announce shortly.
Following the completion of the equity fundraising mentioned above, the Board will review the structure and managerial resources, and will make appropriate changes, to accommodate the future requirements of the business and ensure future value for shareholders.
AssetCo plc +44 (0) 20 8515 3999
John Shannon, Chief Executive Officer
Tim Wightman, Chairman
Arden Partners plc +44 (0) 20 7614 5917
Cadogan PR +44 (0) 7771713608