RESULTS OF CAPITAL RAISING

19 JULY 2019

  • On 24 June 2019, Regional REIT announced a proposed Placing, Open Offer, Offer for Subscription and Intermediaries Offer at 106.5 pence per share (the "Capital Raising").

    Regional REIT is now pleased to announce that it has received valid applications and commitments for the Capital Raising such that the Company will issue 58,685,447 New Ordinary Shares at 106.5 pence per New Ordinary Share, raising, in aggregate, gross proceeds of £62.5 million. The result of the Capital Raising is in excess of the targeted gross proceeds of approximately £50 million announced on 24 June 2019 and the Board has made use of its ability to increase the size of the Capital Raising by issuing a further 11,737,089 New Ordinary Shares in order to raise the aggregate gross proceeds of £62.5 million. The disapplication of pre-emption rights in relation to the New Ordinary Shares was approved at yesterday's Extraordinary General Meeting. The issue of New Ordinary Shares will be split as follows:

    • 28,617,223 New Ordinary Shares under the Placing, raising gross proceeds of £30.5 million;
    • 22,146,290 New Ordinary Shares taken up under the Open Offer, including excess applications, raising gross proceeds of £23.6 million;
    • 1,100,000 New Ordinary Shares under the Offer for Subscription, raising gross proceeds of £1.2 million; and
    • 6,821,934 New Ordinary Shares under the Intermediaries Offer, raising gross proceeds of £7.2 million.

    Applications under the Open Offer (including excess applications) and the Offer for Subscription will all be met in full.

    Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager, commented:

    "We are pleased to announce another successful equity capital raise, in excess of our targeted fundraising size, supporting our next period of growth, and are delighted by the strong response from new and existing shareholders. With a substantial pipeline of attractive near-term investment opportunities, we look forward to continuing to leverage our expertise to make further attractive investments in regional UK property and sector leading returns for shareholders."

    The Capital Raising was approved at the Extraordinary General Meeting held yesterday but remains conditional upon (i) the Placing Agreement becoming unconditional in all respects and (ii) Admission occurring. Application has been made for the admission of 58,685,447 New Ordinary Shares to the Official List of the Financial Conduct Authority ("FCA") and to trading on the premium segment of the London Stock Exchange's main market for listed securities. It is expected that Admission and commencement of dealings in the New Ordinary Shares will become effective at 8.00 a.m. on 23 July 2019.

    The New Ordinary Shares when issued will rank, from Admission, pari passu in all respects with the Existing Ordinary Shares and will have the right to receive all dividends and distributions declared in respect of issued Ordinary Share capital of the Company after Admission.

    The total issued share capital of Regional REIT following Admission will be 431,506,583 Ordinary Shares and the total number of voting rights of the Company will be 431,506,583 and this figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.



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