YUKON, CANADA--(Marketwire - May 31, 2012) -
Subscription for new A-Shares in subsidiary Turbo Power Systems Inc ("TPS", the "Company" or the "Group"), a leading UK based designer and manufacturer of innovative power solutions, is pleased to announce that two existing holders of A-Shares in the Company's subsidiary, Turbo Power Systems Limited ("TPSL") ("A-Shares" and "A-Shareholders"), have conditionally agreed to subscribe for an aggregate of 444,444,444 new A-Shares in TPSL at a price of 0.45 pence per A-Share to raise GBP2 million of new financing for the Group (the "Subscription"). As set out in recent announcements, the directors of the Company (the "Directors") have extensively explored options for addressing the Company's financial constraints and to secure further working capital to support the Company's growth prospects. The Directors believe that the Subscription, split equally between two existing A-Shareholders, Argun Investments Limited and Island Investments (Securities) Limited, being at a premium of over 80% to the Company's closing share price on 30 May 2012, is the most appropriate means of securing further financing at this time. James Pessoa, Chairman, said: "We are delighted and encouraged that existing A-Shareholders are signalling their continuing support for TPS. The capital raised by this subscription will be used to support the growth of the business, which we continue to believe has strong prospects". The Directors consider, having consulted with finnCap Ltd, the Company's nominated adviser, that the terms of the Subscription being entered into are fair and reasonable insofar as the Company's shareholders are concerned. Click on, or paste the following link into your web browser, to view the associated PDF document. http://www.rns-pdf.londonstockexchange.com/rns/5365E_1-2012-5-31.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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