RNS Number:5026H
Tasty PLC
12 November 2007
Tasty Plc ("Tasty" or the "Company")
Placing and Trading Update
The Company is pleased to announce a placing to raise #2.2 million and an update
on trading.
The Placing
The Company announces today that it intends to raise up to #2.2million, before
expenses, through a placing of 2,430,775 new ordinary shares of 10 pence each
("New Shares") at a price of 90 pence per share (the "Placing Price") ("the
Placing"). The Placing Price represents a discount of 11 per cent. to the
closing middle market price of the Company on 9 November 2007 (being the latest
practicable date prior to this announcement). The New Shares will represent
approximately 8.5 per cent. of the current issued share capital of the Company.
The Placing is conditional upon admission of the New Shares to trading on AIM
and is not underwritten.
The net proceeds from the Placing will be used by the Company to fund the
continued expansion of restaurants within the Company.
The Company has been informed that Samuel Kaye, an Executive Director, and Adam
Kaye, a Non-Executive Director, each purchased 111,111 New Shares in the
Placing. Following this purchase, Samuel Kaye and Adam Kaye have a holding of
6,518,874 ordinary shares each, with each holding representing 20.9 per cent. of
the Company's enlarged issued ordinary share capital.
Application will be made for the New Shares to be admitted to trading on AIM and
dealings are expected to commence on 19 November 2007.
Trading Update
The Company announced its interim results on 28 September 2007 at which time the
Board indicated that it had eight restaurants with all locations performing in
line with expectations, save for Nottingham. Since this date the Board has
closed the Nottingham restaurant which will lead to an exceptional write off and
closing cost during the current financial year. The Company has also refurbished
some of its existing restaurants which will be expensed during the current year.
The remaining seven restaurants continue to perform in line with management
expectations.
The expansion plans of the Company continue to be in line with expectations with
a further two restaurants expected to be operational before the year end and the
recently opened central kitchen in Park Royal providing capacity for
considerable expansion. The Board has also identified a number of other
locations in order to continue the roll out of restaurants in 2008.
The Board has continued to strengthen its operations following the interim
results. As announced at the time of the results Jo Fleet has joined the Company
as an Executive Director with further finance and managerial appointments also
having been made. These appointments will increase the costs of the Company
during the remaining months of this year and 2008, but will provide the
appropriate infrastructure for growth. The Board also believes these
appointments will assist the Company's roll out of restaurants and benefit the
performance of the existing locations.
12 November 2007
Enquiries:
Tasty plc 020 7637 1166
Jonny Plant
Evolution Securities 020 7071 4300
Tom Price
Bobbie Hilliam
Fergus Marcroft
This information is provided by RNS
The company news service from the London Stock Exchange
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