Torotrak plc (the 'Company' or 'Torotrak') is pleased to announce that it
intends to undertake a firm placing and open offer of new ordinary shares (the
'Issue').
It is intended that approximately £5.0 million net of expenses will be raised by
the issue of new ordinary shares by way of a placing to institutional and other
investors by Arbuthnot Securities at a price of 30p per ordinary share (the
'Issue Price').
In addition, it is proposed that up to a further £1.75 million will be raised by
the Company pursuant to an Open Offer to shareholders (the 'Open Offer') at the
Issue Price. Shareholders will be able to apply under the Open Offer for shares
in excess of their entitlements. To the extent that excess applications are
received, such applications will be scaled back such that funds raised from the
Open Offer will not exceed £1.75 million. To the extent that entitlements are
not taken up in full and if excess entitlements do not satisfy the Open Offer,
the balance of shares will be subscribed for by the Torotrak Employee Share
Trust (the 'EST'). Any subscription by the EST will not provide additional
funds for the Company.
The Issue is subject to shareholder approval. A prospectus and a notice of
Extraordinary General Meeting will be sent to Torotrak shareholders and, subject
to the approval of the UK Listing Authority, it is anticipated this will be
despatched during the week commencing 16 July 2007.
The funds raised will be used to strengthen the Company's balance sheet and to
provide further working capital to help secure major potential new customers,
with two current major licence agreements at an advanced stage of negotiation.
The funds will also be used to further develop the Infinitrak joint venture in
the Outdoor Power Equipment market to capitalise on its significant market
potential following the commencement of pilot production in March 2007. In
addition, the Company is in discussions to invest in a potential new joint
venture to enhance future returns and accelerate market penetration in the Off
Highway market.
A further announcement will be made by the Company in relation to the Issue in
due course.
For further information contact:
Torotrak: Telephone 01772 900938
Dick Elsy, Chief Executive
Jeremy Deering, Finance Director
Arbuthnot Securities: Telephone 020 7012 2000
Richard Dunn
Ian Williams
Tavistock Communications Telephone 020 7920 3150
Simon Hudson
Lulu Bridges
