Crimsonwing plc published a prospectus on November 30, 2007 in connection with a Combined Offering of 6,747,134 shares (approximately 25.95% of the issued share capital of the Company) of a nominal value of EUR0.10 each at a price of EUR0.50 per share.
A preplacement exercise for up to a maximum of 60% of the combined offering will take place on Friday 7 December. Those shares not acquired during the preplacement will be made available during the General Public Offering which opens on Tuesday 11 December and closes the following Tuesday or earlier in the case of over-subscription. Applications are for a minimum of 2,500 shares (EUREUR1,250) and in multiples of 100 shares (EUR50) thereafter. Crimsonwing has submitted an application for its shares to be admitted to the Official List of the Malta Stock Exchange.
Crimsonwing plc was incorporated as a public limited company on 29 August 2007. It is a holding company with:
• 99.9% of the issued share capital of Crimsonwing (Malta) Limited;
• 100% of the issued share capital of Crimsonwing Group Limited;
• 100% of the issued share capital of Crimsonwing Limited;
• 100% of the issued share capital of Crimsonwing BV;
• 51% of the issued share capital of Promentum Holding BV.
The principal activities of the Crimsonwing Group consist of providing IT based solutions to meet clients’ business needs through three main solution areas: (i) Enterprise Resource Planning and Customer Relationship Management solutions; (ii) Custom Developments and (iii) E-Business Solutions (Intershop). The Group’s key clients include Morrisons, Lloyd’s Register, Kingfield Heath, Williams Lea, Bell Microproducts, Fraser Eagle, Incisive Media and others.
Crimsonwing Malta, Crimsonwing Limited and Crimsonwing BV are responsible for attracting business within the Crimsonwing model in Malta, the United Kingdom and Netherlands respectively. The principal markets have been the United Kingdom and the Netherlands with 93% and 7% of total Group revenues during the year ended 31 March 2007. Following the acquisition of 51% of the share capital of Promentum Holding BV, Group revenue from the Netherlands has grown significantly and for the current financial year ending 31 March 2008, it is expected to contribute to circa 19% of total turnover.
The unique selling point of the Crimsonwing Group business model has been the establishment of a solution centre in Malta which has now been developed as the predominant hub of its business model. The Malta solutions centre has proven to be successful for various reasons including the lower cost base of execution, easy accessibility, excellent communication and business skills and loyalty of the workforce.
The Crimsonwing Group is actively seeking further foreign acquisitions to accelerate its growth mainly by identifying companies operating within the Microsoft technology market. Through the effective use of its business model and the various strategic investments and acquisitions, the Group has consolidated its position within the United Kingdom and the Netherlands and has opened up new business opportunities in the DACH market (Germany, Austria and Switzerland) through Promentum’s subsidiary in Austria.
The Combined Offering consists of an offer by the major shareholder David Walsh of 2,600,000 shares and the exercise of the employee share options of 2,147,134 shares coupled with an issue of 2,000,000 new shares.
For further information on Crimsonwing, investors are requested to consult the Prospectus which is available by email upon request.