TNT Tintra Plc

 

TIDMTWL 
 
RNS Number : 2265Q 
Weather Lottery PLC (The) 
30 July 2010 
 

30 July 2010 
 
                            THE WEATHER LOTTERY PLC 
 
                 ('The Weather Lottery', 'TWL' or the 'Company') 
 
                                Placing & Updates 
 
 
The Weather Lottery plc (AIM: TWL) is pleased to announce that it has today 
placed 53,333,334 new ordinary shares of 0.1p each ("Ordinary Shares") at a 
price of 0.3p per share (the "Placing"). The Placing has raised gross proceeds 
of GBP160,000 for the Company, which will be used to finance the provision of 
in-stadia betting services to football clubs and for other working capital 
purposes. An application has been made for the new Ordinary Shares, which rank 
pari passu with the Company's existing issued Ordinary Shares, to be admitted to 
trading on AIM and it is expected that dealings will commence on 4 August 2010. 
Following the Placing, the Company's issued share capital will consist of 
185,971,405 Ordinary Shares. 
 
In January 2010 the new Board of TWL prepared the Company for a two stage 
fundraising: an initial GBP100,000 at 0.3p to provide additional working capital 
was completed in May; the second stage is to provide the capital necessary to 
expand the Company into the on-line gaming sector under its new brand FC 
Betz.com, which together with its new lottery brand FC Lotto, enables the 
company to offer, almost uniquely, a combined gaming and lottery product to its 
targeted football club market. 
 
Meetings with prospective investors took place in June and early July on the 
basis of an investment at the price of 0.3p again, which was around the bid 
price of the shares in the market at that time. In addition to the Placing, the 
major shareholders Jeffrey Williams and John Botros have given irrevocable 
undertakings to subscribe or procure subscribers for shares at 0.3p to raise 
GBP70,000 (seventy thousand pounds) each within 30 working days.  The gross 
proceeds of the Placing, together with those that will be available under the 
irrevocable undertakings, will amount to GBP300,000 in total and complete the 
second stage of the fundraising. 
 
Following the Placing, Rock (Nominees) Limited will hold 16,666,667 Ordinary 
Shares (8.96% of the Enlarged Share Capital), MCI Services Limited will hold 
13,333,333 Ordinary Shares (7.17% of the Enlarged Share Capital) and SVS 
Securities plc will hold 20,261,718 Ordinary Shares (10.90% of the Enlarged 
Share Capital). 
 
Keith Milhench has agreed to subscribe for 1,666,667 new Ordinary Shares under 
the Placing bringing his total interest to 9,666,667 shares representing 5.20 
per cent. of the Company's enlarged issued ordinary share capital.  The 
independent directors (being Lord Razzall, Andy Moore and Ross White), having 
consulted with the Company's nominated adviser, believe that the terms of the 
subscriptions by Mr Milhench and SVS Securities plc and of the potential 
subscriptions by Messrs. Williams and Botros, are fair and reasonable insofar as 
shareholders are concerned.  Mr Williams is a director of the Company's 
subsidiary, Chameleon Limited and Mr Botros is the Company Secretary for the 
Company and its subsidiaries. 
 
'The Weather Lottery's Chairman, Lord Razzall, said: 
 
"We are delighted in the confidence that investors have shown in our plans and 
look forward to our expansion into the football sector delivering attractive 
returns for shareholders." 
 
 
Updates: 
 
Since the board and management changes earlier this year, the Directors believe 
that the core TWL business has been stabilised and is now poised for growth. The 
Company's management team has been strengthened, with individuals who bring 
relevant contacts and sector experience to TWL.  A core lottery development 
programme has been commenced and discussion with high profile clients is 
ongoing. 
 
The Directors believe that they have identified an opportunity to substantially 
grow the Company's income stream from lotteries without unduly increasing 
overheads and intend to expand the Company's activities into gaming as well as 
lotteries to create an internet-based online gaming group encompassing the 
current core business, which will be branded 'FCBetz.com' ("FCBetz").  The 
Company plans for FCBetz to relocate to the Isle of Man, which is currently more 
tax efficient for Sports and Betting Tax, with a prevailing rate of taxation of 
2%, versus the equivalent rate of 15% for the UK. An application for an Isle of 
Man Gaming License has been commenced by the Company. The Company's CEO, Keith 
Milhench, will also be relocating. 
 
Additionally, the Company has agreed the terms of a sub-license with an 
established gaming software provider, which the Directors believe has a proven 
track record, to provide all online gambling services including sportsbook, 
casino and poker under the FCBetz brand. Gaming revenues are expected to 
commence in the current quarter. The Board also proposes to pursue mobile gaming 
revenue via an affiliate agreement. 
 
In addition to those three already announced, negotiations continue with certain 
Premiership and Championship Football Clubs to become their "Betting Partner". 
The Directors believe that the football clubs' fan base and footprint will 
provide access to a broad demographic user group with an appetite for online 
gambling with the potential for significant incremental revenues and margins, 
through multi-year contracts with established football clubs. The Board believes 
that average annual revenues, over three years, of approximately GBP300,000 per 
football club could be achieved, although there will be variations between 
clubs. The Board has a minimum target of 10 clubs within the next three years, 
inclusive of those already announced. 
 
In order to take advantage of these opportunities, the Company is strengthening 
its management team with the appointment of Ian Smith as Head of Club 
Fulfilment. Mr Smith is an experienced commercial manager, who was previously 
with two football clubs, with relevant media/marketing skills to drive activity 
at the contracted football clubs. 
 
The Board believes that there is potential for a significant increase in revenue 
from a new "football lottery" developed, created and owned by TWL and early 
development discussions have been held with The Football League about the 
possible rollout of this "football lottery" to their 82 Clubs in UK. The Board 
believes that lottery revenue from these activities could be increased by a 
minimum of 50% over revenue from current activities. 
 
 
 
                                   ---ENDS--- 
 
For further information contact: 
 
The Weather Lottery PLC 
            0113 275 0002 
Keith Milhench 
Website www.theweatherlottery.com 
 
Religare Capital Markets (Nomad) 
         020 7444 0800 
Nick Harriss 
 
SVS Securities (Broker) 
              020 7638 5600 
Ian Callaway/Alex Mattey 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IOEDBLBXBDFXBBB 
 

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