The funds raised through the Placing and Open Offer will be used to strengthen
the balance sheet and provide working capital to support the Group’s
commercial operations. They will also be used to develop the new business
pipeline. On completion of the fundraising, Claes Hultman, currently Chairman
of Wembley plc, will be appointed Non-Executive Chairman. The Placing and
Open Offer have been fully underwritten by Investec Bank (UK) Limited.
Summary
* An immediate Cash Placing to raise £357,000 for working capital purposes.
* Placing and Open Offer raising approximately £11.05 million (net).
* 70,000,000 new Ordinary Shares placed at 17p per share, of which 33,329,101
new Ordinary Shares have been offered to existing Shareholders and
Warrantholders as an Open Offer on the basis of 2 new Ordinary Shares for
every 3 existing Ordinary Shares or Warrants.
* The net proceeds of the Placing and Open Offer are necessary to ensure the
Group is able to take advantage of the opportunities now available to it.
The funds will transform the balance sheet and allow the Group to be better
placed to win future contracts.
* Going forward, Keystone will refocus its marketing strategy by
reprioritising its product offerings for each geographical region. In
particular it will concentrate on increasing its market share in
the UK legal market; leveraging the existing US customer base to promote
Keystone Professional and Keystone Net Results; and look to expand where
appropriate into other professional services firms in Australasia.
* A cost reduction programme is being undertaken, in particular focusing on
the overhead cost structure inherited with the BISPoint acquisition and
implementing measures to standardise operations globally. The Directors
believe the financial benefit of this exercise will begin to be realised in
the financial year ending 31 March 2002.
* Following the EGM to approve the Placing and Open Offer, it is proposed
that Claes Hultman will take over as Non-Executive Chairman from Tony
Caplin who will be leaving the Company. Mr Hultman will be subscribing for
588,235 new Ordinary Shares under the Placing.
* The Placing and Open Offer has been fully underwritten by Investec Bank
(UK) Limited.
* Admission is expected to become effective and dealings of New Ordinary
Shares are expected to commence on 15 March 2001. Commenting on the announcement, Graeme Frost said:
We believe this fundraising will safeguard the Company’s position by
providing us with new working capital and strengthening the balance sheet. In
our view, this is essential for the Company in order to win new business and
further develop the business pipeline. Going forward we intend to tighten our
focus on specific areas where we believe we can make significant progress. We
look forward to announcing progress in these areas soon.
We are also delighted that Claes Hultman has joined the team at Keystone.
Claes has extensive business experience and is a welcome addition to the
Board. We would like to thank Tony Caplin for the contribution he has made to
Keystone since its launch on AIM and wish him well in the future.
