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From: Yvonne
ArtDate: 29 November 2000
Section: (FLEET COMMS NEWS RELEASES)
Remote Name: 148.176.237.18
Date: 03/12/00
Time: 22:55
29th November 2000
News Item
WESTSIDE ACQUISITIONS LAUNCHES REVERSE TAKEOVER INVESTMENTS
Westside Investments, one of three subsidiary companies formed by Westside Acquisitions following their December AIM float, has invested £500,000 at 1p per share for 50,000,000 ordinary shares in its wholly-owned subsidiary - Reverse Takeover Investments (RTI). RTI was set up in October 2000 to identify and invest in companies perceived to be ideal candidates for a reverse take-over.
Says Richard Owen, Chairman of Westside: " The move is in line with our intention that each of our subsidiaries - Westside Sports, Westsidetech and Westside Investments - will be developed by acquiring equity stakes in growth companies that can benefit from a combination of financial investment and strategic guidance.
"The establishment of RTI addresses a gap in the market. There are many companies that lack the necessary City experience to float their business that would benefit from the higher profile and access to capital associated with a quote on a recognised exchange. By investing in, and highlighting suitable reverse take-over candidates, RTI will provide a useful conduit to market and, in turn, attractive returns to RTI and Westside shareholders."
Reverse Takeover Investments (RTI) has an initial working capital of £500,000. As the company is likely to require larger financial resources to best exploit opportunities, additional subscriptions will be invited from Westside shareholders and other investors. Westside shareholders and warrant holders who are on the relevant registers at close of business on 28th November 2000 will be able to participate in the development of RTI. They will be granted 210,000,000 short warrants to subscribe for 210,000,000 Ordinary Shares in RTI @ 1p per share (exercisable by 12:00am on 21st December 2000) to raise up to £2,100,000. The deal is subject to shareholder approval.
A prospectus setting out details of RTI and the basis of allocation of share warrants will be sent to Westside shareholders and warrant holders on 30th November. Assuming the warrants are exercised in full, RTI will no longer be a subsidiary of Westside, which would then hold approximately 20% of the enlarged share capital of RTI.
The Executive Directors of RTI are Richard Owen (Chairman), Geoffrey Simmonds (Chief Executive), David Hillel, FCA (Finance Director) and Warren Roiter. Randal MacDonnell has been appointed a Non-Executive Director.
Westside are also planning a buy back program of up to 10million shares at a 5% premium to the market price.
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