Press Release from Service Point Solutions about its equity raise

Per Press Release issued, this morning, by Service Point Solutions:

Service Point Solutions’ equity issue oversubscribed by 112%

18 April 2011. – The Free Allotment and Preemptive Subscription Period ended on 12 April. The additional subscription period has been underway since 13 April and will run until the 19th.

Based on provisional, non-definitive information provided by the placement agent, between the exercise of freely allocated and preemptive subscription rights and the additional shares subscribed to so far, 35,118,220 shares have been subscribed to for an aggregate par value of €21,070,932.00 (of which, €13,871,696.90 corresponds to the cash offering and €7,199,235.10 to the scrip issue), 95.53% of the total offering.

In addition, as notified in a significant event filing dated 31 March 2011, Otus Capital Management has committed to buying to 6,329,114 SPS shares during the third round of the equity offering for €2,500,000, subject to the terms and conditions of the Securities Note and the availability of unsubscribed shares following the first two subscription periods. Including the Otus commitment, total demand stands at €16,371,696.93.

At the Extraordinary General Meeting held in Barcelona on 21 February, the company's shareholders approved an equity offer (partial scrip issue) for an aggregate €14.5 million.

Judging by the provisional and non-definitive figures, at the date of filing this significant event notice, demand for shares to date represents 112.74% of the total equity issue.

This equity raise will serve to reinforce the company’s capital structure and the proceeds will be used (i) to fund organic business growth (€8.5mn), including priority development of the online business, and (ii) to close the Holmbergs acquisition (remaining €6mn).

Service Point Solutions (www.servicepoint.net) is a leading provider of document management and digital printing solutions. It is present in a broad spectrum of industries, including the AEC, finance, public and education segments, servicing over 30,000 B2B customers. It employs 2,207 people across nine countries (the UK, US, Spain, Germany, Netherlands, Belgium, Norway, France and Sweden) via a network of 133 service points worldwide and 816 facilities management programs, while the GlobalGrafixNet platform provides it with an even broader international reach. Its presence in the online business is growing rapidly and already accounts for 6% of revenue. SPS is headquartered in Spain and listed on the Madrid and Barcelona stock exchanges (ticker: SPS.MC).

For further information: Service Point Solutions, S.A.

Pablo Divasson del Fraile pablodivasson@servicepoint.net Tel +34 93 5082400 / Fax +34 93 5082442

Joel’s comment:

Looks like SPS’ equity raise will be successful. However, I feel compelled to say that these have to be some pretty “ballsy-gutsy” investors. My SWAG projection is that SPS will report a bottom-line loss for Q1 2011 and a bottom-line loss for full-year 2011. SPS reported a loss last year, and, quite frankly, I don’t see how they are going to climb into the green this year.