News > Press Release:Placing and Admission to the Alternative Investment Market ("AIM")

2005-02-24
Press Release - 2005-02-24

Freeplay Energy Plc
Placing and Admission to the Alternative Investment Market("AIM")

Freeplay Energy plc ("Freeplay", "the Company" or "the Group") today announces the successful Placing and publication of its admission document in relation to the forthcoming admission of its issued share capital to AIM, a market operated by the London Stock Exchange plc.
Highlights
  • 6,730,900 new Ordinary Shares (Placing Shares) have been placed with UK institutional and other investors at the Placing Price of 52 pence per Ordinary Share. The Placing Shares will represent approximately 32.48 per cent. of the Enlarged Issued Share Capital of the Company. The amount of new money raised for the Company is US$6.6 million (£3.5 million) before expenses
  • Freeplay will have a market capitalisation of £10.8 million on Admission. Trading is expected to commence on 2 March 2005
  • The net proceeds of the Placing will principally be used to market the Group's products, acquire tooling for new products and upgrade tooling for certain existing products and the Group's working capital requirements. In addition, Freeplay intends to increase current stockholding, which will allow the Group to hold components and a small quantity of finished goods to increase supply flexibility and reduce the current eight-week order cycle
  • Established in 1994, Freeplay has developed patented technology that enables exerted human energy to be captured, stored and delivered in an electrical form to power a range of electronic devices
  • First applications include radios, torches and a mobile phone charger, with over 3.5 million units sold to date
  • Freeplay has a new product development plan which anticipates broadening the application of its technology into new product categories in 2005, 2006 and beyond
  • Charles Stanley & Co. Limited is the Nominated Adviser and Broker to the Company
Rory Stear, Chairman and Chief Executive Officer commented:
"We are delighted with the interest shown in Freeplay by institutional investors during the marketing process. The Placing and Admission to AIM will enhance our profile with customers and the funds raised will enable us to vigorously pursue our marketing plans for the US, the UK and Western Europe."

For further information, please visit www.freeplayenergy.com or contact:
Freeplay Energy plc†020 7851 2630
Rory Stear, Chairman and Chief Executive Officer

Weber Shandwick Square Mile†020 7067 0700
Susan Ellis, Nick Oborne, Rachel Taylor

Charles Stanley & Co. Limited†020 7739 8200
Mark Taylor, Freddy Crossley

This press release, which has been issued by Freeplay Energy plc, has been approved by Charles Stanley & Co. Limited solely for the purposes of section 21 of the Financial Services and Markets Act 2000 of the United Kingdom. Charles Stanley & Co. Limited, which is regulated in the UK by the Financial Services Authority, is representing Freeplay Energy plc and no one else and will not be responsible to anyone other than Freeplay Energy plc for providing the protection afforded to customers of Charles Stanley & Co. Limited or for providing advice in relation to the admission to trading on AIM or any acquisition of securities.

No offer or invitation to acquire shares in Freeplay Energy plc is being made by or in connection with this announcement. Any such offer or invitation will be made solely by means of the prospectus to be published in connection with the proposed admission to trading on AIM of Freeplay Energy plc and any acquisition of shares should be made solely on the basis of the information contained in that document. The value of and the income from shares can go down as well as up. Persons needing advice should consult a professional adviser.

This announcement is not an offer of securities for sale or a solicitation of any offer to purchase securities in the United States of America, Canada, Ireland, South Africa, Japan or Australia. This announcement is not for distribution outside the UK, the Channel Islands and the Isle of Man nor to any US person as defined in Regulation S under the United States of America Securities Act of 1933. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities law of any such jurisdictions.

Freeplay Energy plc ("Freeplay", "the Company" or "the Group") today announces the successful Placing and publication of its admission document in relation to the forthcoming admission of its issued share capital to AIM, a market operated by the London Stock Exchange plc.

Introduction
Established in 1994, Freeplay has developed patented technology that enables exerted human energy to be captured, stored and delivered in an electrical form to power a range of electronic devices. First applications include radios, torches and a mobile phone charger, with over 3.5 million units sold to date.

Freeplay seeks to create, develop and supply the market for self-powered energy products internationally. This is being accomplished through both the establishment of its own products in the market, and the formation of strategic alliances with partners, aiming to combine compatible technology with market leadership. At the same time however, its IPR and know-how mean that it may be able to licence or whitelabel its technology to other brands as the market develops.

Freeplay believes it was first to market and commercialise self-powered technology and that it is recognized as a leading brand in this market for such products. Freeplay believes there are limited competitive offerings utilising technology which are less efficient.

Freeplay has a new product development plan which anticipates broadening the application of its technology into new product categories in 2005, 2006 and beyond.

Freeplay is raising $6.6 million (£3.5 million) before expenses by way of a placing of shares at a price of 52 pence per Ordinary Share.

Business Model
The objective of the Company's business is to create shareholder value through meeting the commercial and humanitarian demand for self-powered energy products.

The Directors believe that there are three key advantages to the Company's scaleable business model:
1. Outsourced Production - production is outsourced to manufacturers in China providing the Group with cheap, high quality finished goods;
2. Distribution Agreements - often involving a minimum annual order quantity guaranteeing transparent future revenues; and
3. Proprietary IPR and know-how - ensuring that the Group benefits from the IPR and know-how that has either been created in-house or jointly with other parties and which the Group continues to develop.

Whilst not part of the Group itself, the Freeplay Foundation is an integral part of the business model providing a key link to the humanitarian market primarily for the Lifeline Radio.

History
In April 1994, Chris Staines and Rory Stear began to develop and commercialise the technology of Trevor Baylis' wind-up radio following a feature on BBC1's Tomorrow's World programme.

In February 1996, the original wind-up radio (Freeplay's first commercial product) was manufactured and exported to the UK, Holland and Africa for the first time and subsequently to the US in May of the same year. Following interest in this initial product, the Freeplay brand was launched in September 1996. Since then substantial investment has been made into developing the products.

Summary Financial Information
The table below sets out the summary financial information for the Company for the three years ended 31 December 2003 and the six months to 30 June 2004. This information has been extracted from the audited financial information.


US$'000

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