Shareholders approve NetServices’ cash injection
SHAREHOLDERS of the Salford-based network provider NetServices have approved a cash injection from the investor Ian Smith.
Mr Smith, who already holds 2.4% of the group’s share capital, will pay £115,000 for a further 3.3 million new ordinary shares at 3.5p each. The shares currently trade at 4.6p.
He also has the option to invest a further £2m in extra shares at 8.7p. Mr Smith holds 12.2% of the enlarged share capital and take on the role of non-executive director.
Today’s statement disclosed that Mr Smith, chief executive of West Sussex-based IT firm Xploite, was previously a director at three businesses that shut down owing creditors a total of £1.2m.
He was a director of a company called Decorum Networks which was dissolved in August, 2007, owing creditors £619,305. He was also a director of Broadblue Catamarans, which is in liquidation, and Broadblue Catamarans Sales, which was dissolved in August, 2009. The companies had total debts of £612,593.
NetServices said Mr Smith’s investment would give it the capital required to pursue an acquisition strategy and Mr Smith’s industry knowledge would strengthen the company’s ability to deliver shareholder value.
