The following was issued to the Stock Exchange on Friday (August 21).
Tottenham Hotspur plc
("Tottenham Hotspur" or "the Company")
Placing of new shares to raise £15 million
Tottenham Hotspur (AIM: TTNM.L), announces a placing (the "Placing") of 30 million new ordinary shares of 5p each (the "New Shares"). The New Shares have been placed for cash by Seymour Pierce Limited with new and existing shareholders ("the Placees") at 50p per share and have raised £15 million before expenses. The new funds represent the first stage of capital which is required for the development of the Company's proposed new stadium development, specifically the submission of a full planning proposal later this year.
During the past two years the Company has engaged a full time team of experts and consultants to progress the development of the proposed new stadium. The Company is making solid progress with regard to submitting a full planning application which it expects to submit later this year.
The professional costs to advance the project to a position where the Company can submit a full application for planning will be circa £15 million. The Directors are keen to ensure this stage is reached at no detriment to the core operations of the business, which are subject to both the current economic downturn and the pressure on underlying costs which result from pushing for success in such a hugely competitive business.
The Company has in the past paid ordinary dividends but whilst it undergoes its current capital projects, including the new training facilities, it is unlikely that any ordinary dividends will be paid.
In order to raise the required £15 million, the Company's major shareholder ENIC, has subscribed for the 27.8 million New Shares not taken up by institutional placees in the Placing.
The New Shares, will rank pari passu with existing Ordinary Shares. Following this placing the Company will have 122,799,073 Ordinary Shares in issue and 213,862,111 shares on a fully diluted basis.