Print   



Serviced Office Group ("SOG" or the "Company")

Subscription

The board of SOG is pleased to announce that it has raised £892,340 via way of a subscription of new ordinary shares at 3.5p (the "Subscription"). The subscription is by Lexton Assets SA, (Lexton) a Panama company acting as a nominee for a trust structure of which Andrew Bourne is a beneficiary. Mr Bourne is the Managing Director of Bourne Financial 
Services, a company that specialises in providing serviced offices to the financial sector.

Under the terms of the subscription, Lexton will pay to SOG a total sum of £892,340 via three subscriptions of ordinary shares of 1 pence each in the Company ("Ordinary Shares"). These subscriptions will be structured as follows:

• On 22 December 2009, Lexton will subscribe for 5,714,285 Ordinary Shares at a price of 3.5p;

• On 1 March 2010, Lexton will subscribe for 8,571,428 Ordinary Shares at a price of 3.5p; and

• On 30 November 2010 Lexton will subscribe for 11,209,721 Ordinary Shares at a price of 3.5p.

In the event that the Company does not have sufficient authorities to issue and allot Ordinary Shares to satisfy the 
subscription due in March 2010 a smaller number of Ordinary Shares will be issued with the balance being satisfied once the relevant authorities have been granted by shareholders or on 30 November 2010 (provided the relevant authorities have been granted by that date).

Andrew Bourne will be joining the company with immediate effect and will join the Board once Lexton has subscribed
for a total of £500,000. Andrew has been advised by Pall Mall Capitial in respect of this transaction.

In total, SOG will issue 25,495,434 Ordinary Shares under the Subscription.  The total number of Ordinary Shares to be issued as part of the Subscription will represent approximately 22.5 per cent. of the share capital as enlarged by the Subscription. 

The subscription price of 3.5p (the "Subscription Price") represents a premium of approximately  55 per cent to the closing middle market price of 2.25 pence per Ordinary Share on 21 December 2009, being the last practicable date prior to the announcement of the Subscription. 

Application will be made to the London Stock Exchange for 5,714,285 Ordinary Shares, being the number of Ordinary Shares to satisfy the first payment under the Subscription, to be admitted to trading on AIM and it is expected that Admission will occur on 31 December 2009.

Michael Kingshott, Chairman, commenting on the Subscription said: 

"We are delighted by the support shown to us by Andrew and we all look forward to working with him at this time when SOG has seen considerable growth as well as improved performance  in its business, Andrew's expertise and knowledge of the industry will be particularly useful to us at this time as we continue to grow and seek new opportunities. The ability to be able to offer FSA compliance and authorisation services, via Bourne Financial, will add considerable value across the serviced office group and is the first of many new support services that will be available to our clients. 

22 December 2009

ENQUIRIES:          

Serviced Office Group plc	Tel: 020 7583 8833
Michael Kingshott, Chairman
Evolution Securities Limited	Tel: 020 7071 4300
Bobbie Hilliam

ENDROIUUVORKNRUUAA