- Symphony Environmental Technologies is raising £1,575,000 through a placing of 15,750,000 new ordinary shares to Somerston Environmental Technologies and Symphony chief executive Michael Laurier at 10p apiece.

The placing price represents a premium of approximately 21.2% to the closing price on Friday.

The placing is taking place in two tranches. The first tranche is the issue and allotment of 12,800,000 new ordinary shares to Somerston. The second tranche of 2,950,000 new ordinary shares is subject to shareholder approval at a general meeting. Assuming shareholder approval is obtained, 2,200,000 new ordinary shares will be issued to Somerston and 750,000 new ordinary shares to Laurier.

In addition, 6.7 million warrants have been granted to Somerston. These are exercisable for three years from 14 November 2014 at an exercise price of 15p per ordinary share and would generate gross proceeds of £1,005,000. The issue and allotment of new ordinary shares under the warrant is also conditional upon shareholder approval at the general meeting. The funds raised will be used to repay a £500,000 private loan to the company together with half of a £150,000 loan made to the company by Michelle Laurier, Michael Laurier's wife.

The £75,000 balance of the £150,000 loan by Michelle Laurier is being converted to 750,000 ordinary shares. The rest of the funds will be used as working capital for the group as it continues to develop and market its exciting range of technologies. Except for receivable financing from the Group's main bankers, the resultant debt of the Group will be non-interest bearing. Somerston Capital Limited (a UK subsidiary of the Somerston Group) managing director, Shaun Robinson, said "Symphony has a very exciting range of technologies which will have major social and economic benefits for both developed and developing nations, in particular its antimicrobial range will help to reduce food waste, reduce costs and reduce the usage of artificial preservatives within food. We are really excited to have the opportunity to invest in Symphony and work with the board to more rapidly progress the commercialisation of these technologies."

At 1:27pm: [LON:SYM] Symphony Environmental Technologies PLC share price was +0.38p at 8.63p

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