West Yorkshire engineering firm 600 Group takes a 26% stake in global laser business
West Yorkshire’s 600 Group has acquired shares representing 26.3% of the issued share capital of ProPhotonix, the laser and LED specialist.
The consideration for the purchase of these shares will be satisfied by the issue of 4,925,621 ordinary shares of 1p each in the company (“New Ordinary Shares”) representing 5.5% of the issued share capital of the 600 Group.
ProPhotonix is based in Salem, New Hampshire, USA and consists of two businesses which manufacture LED systems in Cork, Ireland and produce and distribute laser modules and diodes from Hatfield Broad Oak in the UK. In the year to December 2013, Prophotonix reported operating losses of US$1.18 million on annual revenues of US$15.60 million.
600 Group Plc will become the largest shareholder in Prophotonix, and will seek to work constructively with the board of ProPhotonix to explore possible closer business co-operation in future.
An application will be made for the New Ordinary Shares to be admitted to trading on AIM. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares.
Following admission of the New Ordinary Shares, the Company’s issued share capital will consist of 89,607,958 ordinary shares with voting rights. 600 Group does not hold any ordinary shares in treasury.
600 Group chairman, Paul Dupee, said: “This should be construed as a strategic investment in a company with interesting business activities and improving prospects.”
This was posted in Bdaily's Members' News section by Clare Burnett .