Kenetics Raises GBP0.3M Via Placing/4P, Progress On LTA Contract

21st Jun 2010 07:25

LONDON (Dow Jones)--Kenetics Group Ltd. (KEN.LN), a specialist facilities management firm, said Monday it has raised GBP300,000, before expenses, by way of a placing of 7.5 million new ordinary shares at 4 pence per share. MAIN FACTS: -Shares have been placed with Ken Wong, Chairman and Chief Executive and Yeong Hin Yuen, COO of the Company. -Funds will be used for working capital to continue Kenetics fulfillment of its contract with the Singapore Land Transport Authority, or LTA, which is progressing very satisfactorily. -Ken Wong and Yeong Hin Yuen, have subscribed for 5.63 million and 1.88 million new ordinary shares respectively. Following the transaction Ken Wong will own 19.38 million shares, or 47.44% and Yeong Hin Yuen will own 7.7 million shares, or 18.85%. - Kenetics has made significant progress with its contract for the provision of On-board Bus Equipment, or OBE, for the LTA; it has built and tested prototypes and completed initial trials of these OBE, which include the Bus Card Validators, a Bus Fare Console, a Bus Location System and a power distribution unit. -Company has started building pre-production OBE units which are being installed, this month, initially on four trial buses and will be subsequently trialed on a further 170 buses by September this year. -Following successful operational trials, the OBEs are expected to be installed on 4000 public buses. The directors expect this program to start before the end of this year. -As previously stated, the Company would need to raise a further GBP2.5 million of additional working capital to undertake the commercial roll-out of this project. -Shares closed Friday at 2.5 pence valuing the company at GBP0.83 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires June 21, 2010 02:25 ET (06:25 GMT)