Placing and Subscription of up to 8,888,889 new ordinary shares, purchase of own shares and capital reduction
The Medical House PLC ("the Company") (AIM:MLH), the drug delivery and orthopaedic devices company, announces that the High Court has approved the capital reduction on 31 March 2006 which will result in the Company's issued share capital being reduced by approximately 11%, once Companies House has duly registered the reduction.
The Company announced full details of the Proposals on 1 February 2006. On the same date, a circular was sent to the Company's shareholders giving further details of the Proposals. The Proposals were approved by shareholders at an Extraordinary General Meeting of the Company which was held on 27 February 2006.
Other than Tranche 1 of the Placing and Tranche 1 of the Subscription, which were issued and allotted on 27 February 2006, the Proposals remained subject to the approval of the High Court.
As a consequence of the High Court approval of the capital reduction, Tranche 2 of the Placing Shares (5,416,667 ordinary shares) and Tranche 2 of the Subscription Shares (1,250,000 ordinary shares) will now be issued and allotted.
As a result of the Proposals being completed, the total number of shares in issue will be 54,653,617, representing an 11.09% reduction in share capital.
As a consequence of the issue and allotment of Tranche 2 of the Placing Shares and Tranche 2 of the Subscription Shares, the shareholding of Mr Ian Townsend, Chairman of the Company, will increase to 19,879,242 ordinary shares representing approximately 36.37% of the Company's issued share capital following completion of the Proposals.
Application has been made for the shares being issued (6,666,667 ordinary shares) to be admitted to trading on AIM. It is expected that dealings in these shares will commence on 10 April 2006.
For Further Information, please contact:
Ian Townsend Tel: 0114 261 9011
The Medical House
Rebecca Skye Dietrich Tel: 020 7466 5000
Buchanan Communications
Richard Potts Tel: 020 7776 1200
Nomura Code Securities
Publish Date: Wednesday, April 05, 2006