Placing and Loan Note Conversion
The Board of betinternet.com plc, (‘betinternet’ or ‘the Company’) the global on-line gaming group, confirms that following the passing of the resolutions proposed at the Extraordinary General Meeting (‘EGM’) of the Company on 11 January 2006, the placing of 40 million new Ordinary Shares with Burnbrae Limited (‘Burnbrae’) at a price of 4p per share has been completed, raising a total of £1.6 million for the Company before costs.
In addition, Burnbrae’s existing loan (comprising of up to £250,000 of principal and £7,703.08 of accrued interest) has been amended and restated to provide that Burnbrae is entitled to convert that aggregate amount at the rate of one Ordinary Share for every 4p of such amount converted. Burnbrae has now elected to convert that aggregate amount into an additional 6,442,577 new Ordinary Shares.
The Board has allotted 46,442,577 new Ordinary Shares as a result of the placing and loan note conversion. This allotment will increase the holding of Burnbrae and its connected parties to 50.28 per cent of the issued ordinary share capital. Application will be made for admission of the new Ordinary Shares to trading on AIM which is expected to become effective on 18 January 2006.
The Board believes that the raising of this additional finance will enable the Company to move ahead with several strategic developments including the relocation of the Company Sportsbook servers to Curacao, which will allow the Company to accept US wagers, and the continuing development of an improved software platform.