Clipper, the Southampton-based AIM-listed marine events and ocean yacht racing company has raised £1m before expenses, through a placing of new shares and loan notes.
It involved 3,846,155 new ordinary shares of 1p each at 13p per share and £500,000 unsecured convertible loan notes at par, with institutional and other investors.
William Ward and Sir Robin Knox-Johnston, chief executive and chairman of the company respectively have subscribed for a total of 384,616 Placing Shares.The Loan Notes, which have a coupon of 5 1/2 per cent., are convertible at the option of the Note Holders into new ordinary shares of the company at a price of 16p per share.
The Loan Notes are convertible at any time up to five years from the date of issue and are redeemable at par if not converted by April 1, 2008. Payment for £125,000 of the Loan Notes is deferred until May 30, 2003.
Other non-institutional investors include Fast Track Sales, the company's commercial sponsorship partner who have subscribed for £250,000 Loan notes, and Steven Hazel-Smith, chairman of Hoodless Brennan & Partners, the company's broker, who has subscribed for 192,308 Placing Shares.
The Placing Shares will rank pari passu with the ordinary shares of the company currently in issue.
Application has been made for the Placing Shares to be admitted to trading on AIM, with admission expected to take place on April 7, 2003. Hoodless Brennan & Partners has been granted an option over 115,385 new ordinary shares plus such number of new ordinary shares as is equal to three per cent of the number of ordinary shares which may be issued by the company as a result of the conversion of the Loan Notes, exercisable at 13p per option share.
Mr Ward, chief executive of the Shamrock Quay company, commented "This fundraising will assist in the financing and the building of 12 new Clipper 68 yachts, which are expected to be ready for the Clipper 2005 race."
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