Zeus Capital advises CentralNic on £2.3m placing
17th June 2015
CentralNic (AIM: CNIC), the internet platform that derives revenue from the worldwide sales of internet domain names, is pleased to announce that it has raised £2.3 million, before expenses, through the placing of 5,750,000 new ordinary shares of 0.1 pence each (the “Placing Shares”) at 40 pence per share (the “Placing”).
The Board of CentralNic is focussed on delivering a step change in its growth both organically and through the continuation of its proven acquisition strategy as deals are becoming available for each of the Wholesale, Retail and Enterprise business divisions within the Group. The net proceeds of the Placing will be used by the Company to strengthen its balance sheet and in turn enable greater flexibility for smaller investment opportunities as well as more transformational deals and for general working capital purposes. As at 31 December 2014 the Company had net cash of £3.06 million and through its diverse business model, is profitable and cash generative.
The share price of the Placing represents a premium of approximately 16 per cent. to the closing mid-market price of CentralNic’s shares of 34.5 pence as at 16 June 2015, being the latest practicable date prior to this announcement. The Placing Shares will represent 8.58 per cent. of the Company’s enlarged ordinary share capital immediately following Admission.
Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the Placing Shares will commence at 8:00 a.m. on 18 June 2015.
Total voting rights
The enlarged issued share capital of the Company following the issue of the Placing Shares will be 67,007,481 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury. Following Admission, the above figure of 67,007,481 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.
Commenting on the successful Placing, Ben Crawford, Chief Executive of CentralNic, said:
“This past year has been one of significant progress at CentralNic. As well as diversifying our business to gain exposure to the B2C and enterprise markets, we have gained a market share of over 18% of new TLD registrations, ranking the Company as the number two new gTLD wholesaler globally. This is thanks to our strategy of targeting the developing world, where growth is most rapid, as well as our inventory of great TLDs, including .xyz, the world’s leading new gTLD by a considerable distance in terms of number of registrations. The Group looks to continue on its growth path and to increase its portfolio of TLDs, to grow revenues and profits.
“We are delighted to have been able to raise monies from a new institutional shareholder as well as existing shareholders and look forward to working with all our shareholders as CentralNic utilises these new funds to assist the Group in executing our growth strategy in this period of unprecedented change to the internet.”