REFLEX, the computer group, plans to raise £1 million to fund the launch of a chain of Internet Cafes across Britain later this year. Part of the fund raising will be through a £620,000 open offer of new ordinary shares on the basis of one new share for every four held.
Reflex is acquiring Hands On, a concept company with a detailed plan for the launch of the cafes. The company has not yet traded and its only assets are a nominal cash holding and the rights to the detailed Hands On business plan.
Hands on is controlled by Mr Beverley Ripley and Mr Terence Norris, who were involved with the development of the Ritz Video Film hire chain and the Future Zone Computer and Video Game Store chain.
Reflex plans to purchase the entire issued share capital of Hands On for £150,000 from the two men. They will also join the Reflex board and will be paid £60,000 sterling each in annual salary.
Reflex intends to raise £622,000 with a fully underwritten open offer of 7.23 million new shares. These are being offered to shareholders on the basis of one new share for every four shares already held.
The open offer is subject to shareholder approval and is fully underwritten by Mr Tony Kilduff, chairman of Reflex, Mr Peter Thomas, non executive director, and Mr Paschal Taggart, a private investor previously Unconnected with the group.
The pension scheme for Mr Ripley and Mr Norris has also agreed to subscribe £400,000 for four million shares.
The market for Internet Cafes is in its infancy, according to Mr Kilduff. The Hands On proposal aims to develop the concept by adding additional services for customers. The cafes will provide software training, as well as the usual access to the internet.
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