Result of rights issue *. No great enthusiasm displayed, but at least the directors took up most of theirs. This might be a reasonable time to buy (for those who like the company) -
Slough, UK, 29 October 2002 - The Board of Xenova Group plc (Nasdaq NM: XNVA; London Stock Exchange: XEN) announces that the fully underwritten 8 for 33 Rights Issue of 33,710,703 New Ordinary Shares, at a price of 32.5 pence per New Ordinary Share, closed at 9.30 a.m on 28 October 2002. Xenova will raise approximately £9.9 million (net of expenses) pursuant to the Rights Issue.
Xenova received valid acceptances in respect of 5,516,146 New Ordinary Shares from Qualifying Shareholders, which represents an aggregate take up of 16.36 per cent. This includes 135,852 New Ordinary Shares taken up by Directors pursuant to irrevocable undertakings or otherwise. The balance of the New Ordinary Shares not taken up or subscribed for, being 28,194,557 New Ordinary Shares, has
been fully underwritten by Nomura International plc, which will notify sub-underwriters of their allocations later today. The sub-underwriting of the Rights Issue was strongly supported by existing shareholders, with eighteen of the Company's institutional shareholders acting as sub-underwriters.
* Rights issue - a UK tradition which seems not to have caught on in the US. If a company is raising significant capital through issue of additional stock, existing shareholders have a pre-emptive right to partake in that issue. |
