Top Level Domain Holdings to Capitalise on ICANN's New gTLD Introduction

Top Level Domain Holdings plans to raise about £3m via a placing at 6.5p a share to take advantage of the introduction of new generic Top Level Domains, the board of the company has announced.
The company said it was excited about prospects now that ICANN had approved the timeline for the introduction of new gTLDs in 2011.
The company said it intends to raise approximately £3 million by way of a market placing of new ordinary shares of no par value (“Ordinary Shares”) with existing and new shareholders at an indicative placing price of 6.5p per new Ordinary Share (the “Placing Shares”).
The net proceeds of the proposed placing will be used, in conjunction with the Company’s existing cash balances of approximately US$5.5 million (equivalent to approximately £3.4 million at current exchange rates), to develop further the Company’s portfolio of prospective top-level domain projects ahead of the gTLD application process in Spring 2011 and provide additional working capital for the Company. The Placing Shares will rank pari passu with the existing Ordinary Shares.
The net placing proceeds will be used together with the company’s cash balances of around $5.5m to develop its portfolio of prospective top-level domain projects ahead of the gTLD application process in spring 2011.
CEO Antony Van Couverin said, “Having reviewed ICANN’s Final Proposed Applicant Guidebook, and in view of the ICANN Board’s historic decision to do away with cross-ownership restrictions between registries and registrars, we believe that the timing is right for additional investment by TLDH.
“ICANN’s registry-registrar decision means that additional gTLD business models are now viable, and we have already seen a marked increase in interest from prospective new clients. We intend to make sure we have the resources to take advantage of this opportunity.”