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New Investment & Issue of Convertible Loan Notes

  Download PDF - Tuesday 5th November 2013 at 02:00 GMT

ALPHA PROSPECTS PLC
("Alpha" or the "Company")

INVESTMENT IN DERLITE LTD
ISSUE OF CONVERTIBLE LOAN NOTES

Alpha Prospects PLC, an investment holding company listed on the ISDX Growth Market, currently with twelve investments, is pleased to announce that it has acquired a 30% interest in Derlite Ltd ("Derlite"), an electronics manufacturing company specialising in the manufacture of gas ignition systems for the white-goods appliance industry.

Derlite, registered in Hong Kong, comprises a factory in Thailand currently employing 160 staff, together with a UK registered distribution company, Gasignition Ltd. Derlite's product range includes spark electrodes, spark modules, wiring and power cords and Derlite's customers include many household names.

Originally established in Cornwall in 1969 the business relocated to Thailand in 2003 and is equipped to manufacture a full range of components for the white goods market and has capacity available to expand into other areas.

Alpha received its 30% interest in exchange for the cancellation of a debt of GBP250,000 owed to Alpha by Kevin Baker, Derlite's managing director. Alpha acquired Mr Baker's debt from Active Energy Group ("AEG") in exchange for the issue of GBP250,000 nominal of `A' Unsecured Loan Notes 2016 (the "A Notes") by Alpha to AEG. The A Notes carry interest at a rate of 10 per cent. per annum, payable annually either in cash or ordinary shares of 0.5p each in the Company ("Ordinary Shares") at the Company's discretion; the principal is convertible into Ordinary Shares at the rate of GBP0.025 per share. Alpha is entitled to require that any instalment of interest is satisfied by the issue of Ordinary Shares at a price determined by the average mid-market closing price of the Ordinary Shares over the preceding 20 Business Days.

Alpha also announce that it has acquired a further 2,000,000 ordinary shares in AEG for a consideration of GBP50,000, satisfied by the issue of that amount of `B' Unsecured Convertible Notes 2016 (the "B Notes"; together, the A Notes and the B Notes are the "Notes") by Alpha to AEG. The B Notes are issued on terms as to interest, conversion, repayment and otherwise that are the same as those of the A Notes referred to above. This acquisition takes Alpha's shareholding in Active Energy plc to 3,132,074 shares and represents 0.5% of the issued share capital of that company.

The Company has also issued a further GBP280,914 of the A Notes under the same terms as described above, to satisfy certain indebtedness of the Company. GBP125,000 of these Notes have been issued to Christopher Foster, the CEO of the Company, in place of an existing loan from Mr Foster to the Company.

The total nominal value of the Notes to be issued under the agreements above is GBP580,914.

Kevin Baker, Managing Director of Derlite stated:

"We are pleased to have Alpha Prospects as a new investment shareholder, their potential access to capital will allow Derlite to grow at a much faster pace than is currently possible. Our main competitors are located in China and rising prices there are improving our competitiveness, as a result we are looking to increase market share and to expand the range of products."

Christopher Foster, Chief Executive, Alpha Prospects PLC, commented:

"Derlite is a well-managed company with major international companies as its Clients and we believe it has the potential to expand. We look forward to helping them achieve that potential.

"We are actively considering a number of further investments all of which are with companies that, we believe, offer significant growth."

The Directors of Alpha Prospects Plc are responsible for the contents of this announcement.

Enquiries:

ALPHA PROSPECTS PLC Christopher Foster +44 20 7518 4300
PETERHOUSE CORPORATE FINANCE LIMITED Fungai Ndoro / Eran Zucker +44 20 7469 0932
LOTHBURY FINANCIAL SERVICES LIMITED Michael Padley / Chris Roberts +44 20 3440 7620