The leading supplier of managed services and technology-based security solutions worldwide said the placing will be conducted at a price of 4p per share and will comprise approximately 125,000,000 new ordinary shares, representing approximately 44% of the group’s enlarged share capital.
The placing price represents a discount of approximately 36.5% to Westminster’s closing middle market price of 6.3p per share on December 2, 2020. In early morning trade on Thursday, Westminster shares were down 27% at 4.60p.
Subscribers in the placing will also be granted warrants to subscribe for new ordinary shares on the basis of 1 warrant for each 5 placing shares basis. The warrants will be exercisable at 7p per new ordinary share for a period of 24 months from closing.
Westminister said that up to GBP2.6mln of the gross proceeds of the placing will be used to fully redeem the company’s outstanding Convertible Loan Notes and Convertible Unsecured Loan Stock, and to repay the outstanding balance on its Mezzanine Loan Facility.
It said the balance of the gross proceeds will be used as working capital to support the initial deployment of long-term multi-million-pound annual recurring revenue prospects in advanced stages of negotiation, as well as the company’s recently secured Palace of Westminster contract, and to pay associated expenses.
The accelerated bookbuild process will be conducted by Arden Partners, now the company’s sole broker.
In a separate announcement on Thursday, Westminister said it had appointed Arden as sole broker and Strand Hanson as its financial and nominated adviser, in each case with immediate effect.