Publishing Technology donates to Help for Heroes

At the AGM of Publishing Technology plc, held on 1st June 2010, the company secured unanimous backing to approach small shareholders and make an offer to purchase their holdings at preferential rates. This offer is made to reduce the size of the shareholder register having recognised that many holdings were the result of dot.com investments which were now uneconomic to sell.

Publishing Technology was created by Vista International Limited’s reverse takeover of Ingenta plc in 2007 and the company, therefore, inherited the shareholders of Ingenta. As a result of the rapid increase in share numbers in Ingenta during the dot.com boom from 1999 to 2003 and the subsequent decrease in value in the mid 2000’s, a number of holders were left with minor investments which it was uneconomic to sell. At the time of the AGM there were 465 shareholders whose holdings were worth less than £20.

Unless the company made an offer, these holdings would remain on the register and create costs year on year.

During June 2010, the company wrote to all shareholders with less than 30 shares offering to buy their holding at £1 per share. Anticipating that most small holders had no incentive to send the paperwork back, the company gave the shareholders two options; to accept payment of £1 per share by cheque or bank transfer, or to donate their holding to Help for Heroes, in which case the company would double the price paid to the charity to £2 per share.

It was hoped this offer would encourage small holders to take a moment to return the papers and allow Help for Heroes to benefit from something which was, to them, a worthless asset. The company calculated that if all small shareholders donated their holdings the charity could benefit by £9,000.

The Help for Heroes charity raises money to support members of the Armed Forces who have been wounded in the service of their country. Further information can be found at here.

Update on 12th July, 2010.

Letters sent                                           465
Responses received                           193 (42%)
Raised for Help for Heroes so far    £2,024 (£1,012 from shareholders and £1,012 from the company)

We have now had a response from 42% of shareholders.

Of these, we still have 19 paperwork corrections to be completed and 68 shareholders have elected for a cheque or bank transfer, but 106 (55%) of respondents have donated their holdings allowing the charity to benefit by £2,024 so far.

Thank you to all shareholders who have responded and particularly to those who have donated their shares to Help for Heroes