Venture Finance Gain
14 June 2007
General Capital Group (AiM:GENC) the asset and venture finance specialist, today announces the realisation of a gain of approximately £1m as a result of the sale of its entire beneficial interest in Greatfleet plc (AiM:GFG).
On 24 April 2007, General Capital entered into an option agreement ("the Option Agreement") with Fram Capital Ltd (formerly New Broad Street Investments Ltd) a company incorporated in Guernsey. Pursuant to the Option Agreement under which General Capital was paid a fee of £100,000, General Capital granted an option to Fram Capital to acquire General Capital's entire shareholding in Greatfleet plc comprising 11,666,667 shares of 2p each (the "Greatfleet Shares") at 14p per share ("the Option"). The Greatfleet Shares represent approximately 15.7% of the current issued share capital of Greatfleet. The Option has been exercised by Fram Capital resulting in the sale of the Greatfleet Shares to Fram Capital.
Commenting on this result Jonathan Hill noted: "We have been debt providers to Greatfleet since July 2005 and became equity holders in December 2005 on conversion of our Series A Convertible Loan Note at a conversion price of 2.5p per share. Over the past eighteen months Greatfleet has made excellent progress and its shareholders have much to thank Stuart Blake (Greatfleet's CEO) for in the successful restoration of shareholder value".
He went on to note, "In March this year Greatfleet raised £2.52m (gross) by way of a placing of 18m new shares at 14p per placing share. Of these proceeds approximately £0.9m was utilised to pay down the General Capital facility".
For Further Information:
| General Capital Group plc | |
| Jonathan Hill, executive Deputy Chairman | Tel: +44 (0) 1603 610 610 |
| jonathan.hill@generalcapital.co.uk | www.generalcapital.co.uk |
| Collins Stewart Europe Ltd | |
| Chris Wells / Mark Connelly / Adam Cowen | Tel: +44 (0) 20 7523 8000 |
| mconnelly@collins-stewart.com acowen@collins-stewart.com |
www.cstplc.com |
Media Enquiries:
| Abchurch Communications | |
| Heather Salmond / Hugo Jenkins | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |