VPhase seeks to raise 0.5m pounds with conditional share placing

Energy efficiency company VPhase has conditionally placed 103,800,000 new ordinary shares of 0.25p each at a price of 0.5p per share to raise gross proceeds of 0.5m pounds.

The company has entered into a conditional placing agreement with its corporate broker Panmure Gordon, under which Panmure Gordon will procure up to 103,800,800 placing shares at a price of 0.5p per share as the placing price.

The placing price represents a discount of 13% to the official closing market price of 0.575p of an existing ordinary share on December 20.

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If all the placing shares are issued, they will represent 8.1% of the company's enlarged issued share capital.

The placing is conditional upon the passing of certain resolutions by shareholders of the company at a general meeting scheduled for January 14 2013.

The company reported that it has seen growth in sales revenues in the period to November 2012 and a four-fold increase in volumes during the same period in each case as compared to 2011.

VPhase said that the growth had been driven by a focus on social housing where the directors believe the benefits of the VPhase product are well recognised.

Commenting on the placing, Rick Smith, Chief Executive Officer of VPhase, said "We are delighted to have had the support of our shareholders in raising funds that will further the continued development of VPhase through the current challenging environment. The company is working with major partners to roll out our products and we look forward to the next phase of VPhase's growth."

VPhase's share price was unchanged at 0.58p at 08:20 on Friday morning.

MF