Company Restructuring & Board Change
October 07 2009 - 12:12PM
UK Regulatory
TIDMADE TIDMPLEI
RNS Number : 4234A
ADDleisure PLC
07 October 2009
ADDleisure Plc / Epic: ADE.L / Index: AIM / Sector: Leisure
7 October 2009
ADDleisure Plc ('ADDleisure' or 'the Company')
Company Restructuring & Board Change
ADDleisure Plc, the AIM traded company formed to develop products and services
in the health and wellness sector, announces that its 50.2% owned subsidiary
Ez-Runner, the web based leisure management software business, entered into
administration on 5 October 2009.
Following the placement of Ez-Runner into administration, ADDleisure has
subsequently been advised that a management team, led by Stefan Drummond, a
director of Ez-Runner, has purchased Ez-Runner from the administrators, Atherton
Bailey.
Further to this, David Cummin, the Company's Technical Director, has stepped
down from the Board of ADDleisure and Ez-Runner Limited ('Ez-Runner') with
immediate effect. Mr. Cummin established Digital Plantation Limited ('Digital
Plantation') in 2003 before the Company acquired a 50.2% shareholding in the
business in 2005. ADDleisure announced in October 2008 that Digital Plantation
had acquired the total issued share capital of ClubRunner (Europe) Limited and
the newly formed enlarged company changed its name to Ez-Runner Limited.
The restructuring of the Company will see ADDleisure focussing solely on its
wholly owned subsidiary Fitbug Limited which holds the rights to Fitbug, the
online personal health and well-being coach. The Board believes that Fitbug
Limited, which has an exciting pipeline of new business with major corporates,
Primary Care Trusts and health insurance companies, has the strongest potential
to derive value for ADDleisure shareholders in the medium term.
The Company intends to raise new capital by way of a Placing through its broker
Seymour Pierce and in order to accommodate the short term cash flow requirements
of the Company, Allan Fisher, David Turner and Pantheon Leisure Plc ('the
Lenders') are making available an amount of GBP250,000 ('the Facility') to
Fitbug Limited by way of bridging finance which will be repaid on completion of
the placing. This Facility will be used for general working capital, research
and development to leverage the Fitbug product into new markets and geographic
territories. The Facility is being provided interest free providing the entire
amount is repaid on successful completion of a Placing on or before 31 January
2010. If the Facility is not repaid by 31 January 2010 an interest rate equal to
LIBOR plus 5 per cent. per annum will become payable. The Facility shall
thereafter be repayable on demand.
The bridging finance provided by Allan Fisher and David Turner, both directors
of ADDleisure, and Pantheon (a substantial shareholder of the Company within the
meaning of the AIM Rules) is a related party transaction within the meaning of
the AIM Rules. The Company has consulted Seymour Pierce Limited, the Company's
Nominated Adviser, which considers the terms of the bridging finance fair and
reasonable.
** E N D S **
For further information visit www.ADDleisure.com or contact:
+----------------------------+----------------------------+-------------------+
| Andrew Brummer | ADDleisure Plc | Tel: 020 7449 |
| | | 1000 |
+----------------------------+----------------------------+-------------------+
| Mark Percy | Seymour Pierce | Tel: 020 7107 |
| | | 8000 |
+----------------------------+----------------------------+-------------------+
| Susie Callear | St Brides Media & Finance | Tel: 020 7236 |
| | Ltd | 1177 |
+----------------------------+----------------------------+-------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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