NFND Newfound

RNS Number:1928J
Newfound N.V.
05 December 2007

                                 Newfound N.V.


Placing of new Ordinary Shares to raise #3.6 million


Further to the announcement of 4 December 2007, Newfound N.V. ("Newfound" or the
"Company") announces that it has raised #3.6 million (before expenses) by way of
a share placing ("Placing") to institutional and other investors of 35,807,962
new ordinary shares (the "Placing Shares").  This is in addition to the #7
million subscription by Jeremy White and John Morgan, Directors of the Company,
announced on 13 November 2007 (the "Subscription").  The Placing Shares are
being issued at 10p per share, which is the same issue price as for the
Subscription.  The price of 10p per share represents a discount to the closing
mid-market share price on 4 December 2007 of 14.9%.


Based upon the valuation undertaken by Humberts Leisure, the international
leisure business consultants, announced in the Interim Results on 26 September
2007, the pro-forma NAV per share is calculated at 45p per share following the
Subscription and Placing*.


The proceeds of the Placing, together with those of the Subscription, will be
used for general working capital purposes and to allow the Company to pursue its
revised business strategy.  The Company's strategy is to:

*     Focus on the conservation of working capital in the near term, including,
inter alia, reduction of overheads at Humber Valley Resort;

*     Further develop its current projects to build additional value and
returns, which  will include, inter alia, the development of relationships with
branded operators and resort funds, driving sales growth through marketing led
development, finalising the Nevis masterplan and obtaining outline planning
permission, and the pursuit of debt financing for ongoing resort development
supported by the assets of the Group;

*     Review and assess opportunities for bulk land sales, sales of legacy plots
and re-sales;

*     Expand holiday sales through direct and specialist tour operators and
partnerships with holiday sales companies for Humber Valley Resort;

*     Expand the resort portfolio in the long term.


As stated in the Circular to shareholders dated 13 November 2007, there are a
number of opportunities in the near term for the generation of additional
capital through the operations of the business.  In particular, the proposed
transaction to sell land at Nevis for the development of a 5 star hotel
continues to progress and there are bulk land sale opportunities at both Nevis
and Humber Valley that could realise significant cash for the Group.  These
transactions would provide the Group with a platform from which to continue to
develop the resorts at Humber Valley and Nevis.  The Company's success in
completing some or all of these transactions will, however, inevitably be
critical for the prospects of the Group over the longer term.


Application will be made to the London Stock Exchange for the new ordinary
shares to be issued pursuant to the Placing to be admitted to trading on AIM ("
Admission").  It is expected that Admission will become effective and that
dealings will commence at 8.00 a.m. on 11 December 2007 in respect of 35,807,962
new ordinary shares.


The new ordinary shares to be issued pursuant to the Placing will, when issued
and fully paid, rank pari passu in all respects with the existing ordinary
shares of Newfound.


Following the issue of the Placing Shares and the new ordinary shares issued
pursuant to the Subscription, the Company's total issued share capital with
voting rights and which is admitted to trading on AIM will consist of
179,709,687 ordinary shares, with one voting right per share.  In addition, the
Company has in issue 54,174,928 Special Voting Shares, which constitute a
separate class of share that is not admitted to trading on AIM.  Each Special
Voting Share confers the right to cast one vote at a general meeting.  The total
number of voting rights in the Company is therefore 233,884,615.  The Company
does not hold any shares in Treasury.


Note

* Based on the valuation undertaken by Humberts Leisure, the international
leisure business consultants, announced in the Interim Results on 26 September
2007, including the #7 million subscription by Jeremy White and John Morgan
announced on 13 November 2007 and assuming full subscription of the #3.6 million
Placing Shares. The valuation by Humberts Leisure is based on a Balance Sheet
valuation which assumes that properties at a resort are sold and built out over
a number of years. In arriving at the valuation, costs and sales prices are
inflated and the resultant profit adjusted for finance costs and developers
profit. This is then discounted to present day values. The Company considers
that this is a typical methodology for valuing resorts and hotels.


Enquiries:


Newfound N.V.
John Theophilus, Chief Executive Officer           +44 (0) 207 470 2487

Collins Stewart Europe Limited
Adrian Hadden                                      +44(0)20 7523 8350


About Newfound:


Newfound is a creator and operator of international luxury resorts and
destinations.  The Company has a high quality portfolio of resort projects at
Humber Valley in Canada and in Nevis and St. Kitts in the Caribbean.


Humber Valley Resort, with 2,200 acres, currently has over 200 privately owned
properties the majority of which are available for rent.  It is an all-season,
luxury resort offering golf, world-class salmon fishing, sailing, skiing and a
luxury spa.


Newfound has an integrated business model based on destination master-planning,
which generates revenues from multiple sources, including freehold land sales,
construction and development, services to owners, the provision of leisure
activities and the operation of concessions.


Newfound is building an industry leading, world-class luxury lifestyle brand
offering exceptional holiday experiences in luxurious homes, situated in
locations of outstanding natural beauty.


www.newfoundgroup.com


Ends



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

IOEUUGBGPUPMPPC

Newfound (LSE:NFND)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Newfound (LSE:NFND)
Historical Stock Chart
Von Jun 2023 bis Jun 2024