A busy day in the Warsaw Underground !

Not just another coffee shop chain - this one is a brand leader and is only trading in Eastern/Central Europe (i.e. the countries recently admitted to the EU destined for substantial business growth). The company is creating new outlets at a fair old pace and take a look at their website - these are quality stores in high-profile locations like major airports, railway stations etc. Website: http://www.coffeeheaven.eu.com

APRIL 2006 TRADING UPDATE!!! Total Gross Revenues for 12 months to 31st March up 66% to £6.3M (2005: £3.8M) Lots more info. on new markets and stores click here to read the full details. Stores: 43 (up from 32) stores currently trading (Poland: 30 (up from 23), Czech Republic: 6 (Up from 2), Latvia: 7 with a further 5 units under construction including Bulgaria and sites secured in Romania (subject contract). Bulgaria & Romania are seeking to join the EU from January 2007. Sites located in key high street, shopping malls or Airport locations. Company growth target: increase number of units by at least 20 units to some 63 units by 31 March 2007. Aim being to achieve this level of growth within present Cash resources.Cash balances at 31 March 2006 were approximately £2.9M (2005: £0.7M). Debt was nil (2005: £ 2.5M): Nil Debt! Positive EBITDA: For the year ending 31 March 2006, Group EBITDA expected to be firmly positive after charging UK and new market development costs but before exceptional costs relating to the cancellation of bonds (previous Debt). Forecasts: Based on present trading conditions and current exchange rates we anticipate indicative sales of £9.3M for the year to 31 March 2007. This includes indicative sales of £0.4M from Bulgaria, which will be reported but not consolidated. From Richard Worthington (Chairman and Chief Executive): ‘The new financial year has started well. There is no doubt that the significant economic improvement in our markets is feeding through to consumer confidence and spending. The strength of the coffeeheaven brand ensures we are ideally positioned to benefit from our customers' increasing prosperity.’

Onwards and upwards chaps, hope to see blue in my portfolio now, average purchase price of 1.40 for me... Good set of results...

Firstly, all credit to Richard Worthington for the detailed transparency of the report, especially such items as the UK directors' fees and other central overheads which so often drag a group's performance into the realms of disappointment..

This is a 5-year investment, not a quick trade. The reduction of risk emphasised throughout the report in terms of how they enter new markets with low capital needs and matched currency risks are the antithesis of quick burn spikey progress that most PI's seem to crave these days.

The rewards for this are a) minimal dilution of shareholder value by the otherwise need for constant large fund-raisings and b) a rock solid base capable of withstanding the volatile ride inherent in the new economies of middle Europe.

Do you believe that, in 5 years time, the SP will be 12.0p? If they continue to realise their carefully laid plans, it could well happen.

Chartwise, it's nice to see we've broken up through the recent stubborn resitance at 1.35. Let's hope we can hold above there for now. If so, we will likely move back towards a 1.40-1.60p trading range with 1.60p being the next milestone to beat on H1 results for 2005/06.

WDIK, DYOR

sd

I think the management are steering the company and market expectation very cleverly. A good set of results overall - bodes very well for the future. Confident we will achieve Stockdog's 12p in the fullness of time, probably without many investors noticing!

Here we are then ..new store opening increase at 30 to 40% per year. In 7 years we have nearly 300 stores. 100 mil customers, say 10 mil profit, market cap 200 mil, share price 50p ish. Take bid launched at 65p per share...Getting carried away now...come on Mr W we know you can do it!!!

Be able to retire if we get to 50p...

More than 10% spread again. It's no wonder the price goes nowhere.

Anyone know if/when COH start trading SETSMM?

Doug

Further buy recommend from RHPS weekly update apparently.

No wonder alot of buys of around 1k, thanks for information.

Happy to move the price up on low volume.
That's better
Received company results through the post last week.
All looks good and happy to hold

Yes, think the MM's want our stock, very low volume and the price up 3.5%... No news due so wonder whats up if anything...

Perhaps, just perhaps, a few more punters are beginning to realise what a great little company this is.

Lets hope so, i'm now at break even after 18 months, onwards and upwards lets hope...

Also happy to move the price down on very low volume
Has to be a topping up opportunity

For those that are interested, very interesting RNS, long term prospects are exciting, just spoke to CEO who is very upbeat about the future of this company...


Introduction

The Company is pleased to announce that it proposes to raise up to approximately #6.26 million (before expenses) by way of a Placing and Open Offer. The Company proposes to raise approximately #5.2 million under the Placing and up to approximately #1.06 million under the Open Offer. The Placing and Open Offer are subject to the approval of Shareholders at the Extraordinary General Meeting.

The Placing Shares have been conditionally placed by Seymour Pierce with certain institutional and other investors pursuant to the Placing Agreement. Neither the Placing nor the Open Offer is being underwritten by Seymour Pierce.

The net funds raised by the Company through the Placing and Open Offer will be used to repay all the Group's existing borrowings including the Bonds, which will be cancelled following their purchase by CHI Polska. The balance of such funds will be used to further expand the current activities of the Group and to provide additional working capital. The Open Offer is conditional on the Placing, such that neither will be completed unless the Placing becomes unconditional in accordance with its terms.

As part of the arrangements for the Placing and Open Offer, one of the resolutions to be proposed at the Extraordinary General Meeting is to consolidate the existing Ordinary Shares of 0.1p each into new Ordinary Shares of 1p each to the effect that on completion of the Proposals, holders of Existing Ordinary Shares will hold 1 Ordinary Share of 1p each for every 10 Existing Ordinary Shares held.

Background to and Reasons for the Placing and Open Offer

After detailed consideration by the Board, the Directors have concluded that the Proposals are the most appropriate method of obtaining the longer term funding required to achieve the Group's aims.

Use of Proceeds

The net funds of approximately #4.82 million raised by the Company through the Placing are intended to be used to enable the Group to repay all its borrowings totalling approximately #2.9 million including approximately #2.6 million for the Bonds. The balance of the Placing funds not used to repay borrowings, being approximately #1.9 million, and the net funds from the Open Offer will be used to further expand the current activities of the Group and to provide additional working capital.

The Bonds issued by the Group's trading subsidiary CHI Polska in Poland, which amount to PLN 14 million (approximately #2.3 million), comprise the major part of the Group's borrowings. In that connection, SEB has confirmed on behalf of the SEB funds that hold the Bonds that the holders are prepared to sell the Bonds to CHI Polska at a price equal to 108 per cent. of the nominal value of the Bonds plus accrued unpaid interest, subject to there being no radical change in market conditions. Following the purchase of the Bonds they will be cancelled. In addition (with reference to bank statements) as at 30 September 2005 (the latest practicable date prior to the publication of the Prospectus) Coffee Nation had unaudited bank borrowings amounting to LVL257,000 (approximately #259,000) and CHI Czech had unaudited bank borrowings amounting to USD142,500 (approximately #81,000). Based upon the unaudited management accounts of the Group to 30 September 2005, the effect of the Placing will be to remove the net debt of the Group, and therefore affect earnings by removing debt interest payments, and leave the Group with Placing funds of approximately #1.9 million (excluding any funds raised under the Open Offer) as additional working capital.

Details of the Placing and Open Offer

The Company is proposing to raise up to approximately #6.26 million before expenses by way of the Placing and Open Offer. The Placing Shares have been conditionally placed at the Issue Price of 11p by Seymour Pierce with certain institutional and other investors pursuant to the Placing Agreement, further details of which are set out in the Prospectus.

Separately, under the terms of the Open Offer applications are being invited from Qualifying Shareholders to subscribe for up to 9,573,274 new Ordinary Shares at the Issue Price on the following basis:


1 Offer Share for every 50 Existing Ordinary Shares


and so in proportion for any other number of Existing Ordinary Shares held at the close of business on the Record Date. Fractional entitlements to Offer Shares will not be allotted, each Qualifying Shareholder's entitlement under the Open Offer being rounded down to the nearest whole number. Any fractional entitlements may be aggregated and sold, if required, for the benefit of the Company. The Offer Shares must be paid for in full on application. Applications accompanied by payment in full must be received not later than 3.00 p.m. on 16 November 2005.

Applications by Qualifying Shareholders will be satisfied in full up to their pro rata entitlements as shown in box 3 of the Application Form.

Qualifying Shareholders' Basic Entitlements are shown on the Application Form. The Excess Application Facility enables Qualifying Shareholders to apply for Offer Shares in excess of their Basic Entitlement in multiples of 1,000 Offer Shares subject to the total number of Offer Shares applied for under the Open Offer not exceeding 9,573,274 Offer Shares. Applications under the Excess Application Facility may be scaled down in such a manner as the Directors and Seymour Pierce determine if applications are received from Qualifying Shareholders for more than the available Offer Shares.

Qualifying Shareholders should note that the Open Offer is not a rights issue. Qualifying Shareholders' entitlements under the Open Offer are not transferable except to satisfy bona fide market claims and the Application Form is not a document of title and cannot be traded. Qualifying Shareholders should be aware that in the case of an Open Offer, unlike in a rights issue, any Offer Shares not applied for will not be sold in the market or placed for the benefit of Qualifying Shareholders who do not apply under the Open Offer.

The Placing Shares and Offer Shares will, when issued and fully paid, rank pari passu in all respects with the Existing Ordinary Shares (following consolidation of those shares into Ordinary Shares of 1p each).

The net proceeds of the Placing and Open Offer will be used to fund the strategy outlined in the "Use of Proceeds" section above.

The Placing and the Open Offer are conditional, inter alia, on the passing of the Resolutions, on the Placing Agreement becoming unconditional in all respects and not being terminated in accordance with its terms and on Admission becoming effective on or before 23 November 2005 (or such later date as the Company and Seymour Pierce may agree, but in any event not later than 7 December 2005). The conditions of the Placing Agreement include a condition that subscriptions are obtained in the Placing for Placing Shares to a value of not less than #3,768,000 (after expenses), Seymour Pierce has the right to terminate its obligations under the Placing Agreement in the event of, inter alia, any of the warranties contained therein not being true, material breach by the Company of its obligations under the Placing Agreement or the occurrence of any event requiring the publication of a supplementary prospectus.

If Admission has not occurred by 23 November 2005 or such later date, not being later than 7 December 2005 as the Company and Seymour Pierce may agree, application monies received from applicants under the Open Offer will be returned to such persons without interest as soon as practicable.

Further details of the Proposals and the terms and conditions on which they are being made, including the procedure for acceptance and payment under the Open Offer, are set out in the letter from Seymour Pierce in Part 4 of the Prospectus and in the Application Form.

Significant Shareholder

The Company has secured funding from NFI Empik Media & Fashion S.A., a significant trade and strategic investor. NFI Empik Media & Fashion S.A. will subscribe for 10,045,455 Placing Shares under the Placing which will result in them holding 10.39 per cent. of the enlarged issued share capital following completion of the Proposals (assuming no Offer Shares are subscribed for by Qualifying Shareholders under the Open Offer).

Directors' and Other Intentions

As part of the arrangements for the Open Offer, the Directors have irrevocably committed to apply for #37,065 of Offer Shares under the Open Offer (equivalent to a total of 336,955 new Ordinary Shares) in respect of their own aggregate beneficial shareholdings of 14,196,887 Existing Ordinary Shares, representing 2.97 per cent. of the total issued share capital of the Company as at 25 October 2005. This includes, in the case of Robert Morrish, an application for 121,000 Offer Shares and, in the case of Jonathan Cooper, an application for 6,000 Offer Shares under the Excess Application Facility. In addition, Diggle Investments Limited has undertaken to take up its pro rata allocation of 648,359 Offer Shares (#71,319) under the Open Offer.

Share Consolidation

The Company's middle market share price, as at the close of business on 24 October 2005, the latest practicable date before publication of the Prospectus, was 1.22p, with a 1.15p - 1.30p bid/offer spread. In order, inter alia, to reduce the bid/offer spread in the Ordinary Shares, which the Board believes currently hinders trading in the Existing Ordinary Shares, it is proposed to consolidate every 10 Existing Ordinary Shares of 0.1p each into one Ordinary Share of 1p.

Subject to the Resolutions being passed by Shareholders at the EGM and the Placing Agreement becoming unconditional and not being terminated in accordance with its terms, the issued and unissued Ordinary Shares of 0.1p each in the capital of the Company will, with effect from completion of the Proposals be consolidated into Ordinary Shares of 1p each so that holders of Existing Ordinary Shares will then hold 1 Ordinary Share of 1p each for every 10 Existing Ordinary Shares of 0.1p each previously held. Fractional entitlements will not be allocated but instead aggregated and sold in the market for the benefit of the Company.

Dealings and Settlement

Application will be made by the Company for the new Ordinary Shares being issued pursuant to the Placing and Open Offer and the Ordinary Shares arising on consolidation of the Existing Ordinary Shares to be admitted to trading on AIM. Subject to completion of the Proposals, trading in such Ordinary Shares is expected to commence at 8.00am on 23 November 2005.

Overseas Shareholders

Shareholders who have registered addresses outside the United Kingdom or who are resident in, or citizens of, countries other than the United Kingdom should refer to Part 4 of the Prospectus under the heading "Overseas Shareholders". Such Shareholders must satisfy themselves as to the applicable laws and their observance thereof.

Extraordinary General Meeting

A notice convening an Extraordinary General Meeting of the Company which is to be held at 11.00 a.m. on 21 November 2005 at Marriott Goodwood Park Hotel, Goodwood, Chichester, PO18 0QB is included at the end of the Prospectus. At this meeting resolutions will be proposed as follows, whereby subject to the Placing Agreement becoming unconditional:


(a) the existing issued and unissued Ordinary Shares of 0.1p each will be


consolidated into Ordinary Shares of 1p;


(b) the Directors will be authorised to allot new Ordinary Shares up to an


aggregate nominal amount of #942,082.57, including up to #583,823.66 in connection with the arrangements for the Placing and Open Offer and up to #4,096.45 pursuant to the Management Option Agreements (further details of which are set out in paragraph 5 of Part 7 of the Prospectus); and


(c) the Directors will be authorised to allot equity securities for cash


pursuant to the authority referred to in paragraph (b) above as if the statutory pre-emption rights set out in section 89 of the Companies Act did not apply to any such allotment, including the power to allot equity securities for cash (otherwise than pursuant to the arrangements for the Placing and Open Offer, Management Option Agreements or pro rata to existing Shareholders) up to an aggregate nominal amount of #106,250, being equal to approximately 10 per cent. of the issued ordinary share capital of the Company immediately following completion of the Proposals.

Action to be taken to make application under the Open Offer

The action to be taken by Qualifying Shareholders in order to apply under the Open Offer is set out under "Procedure for application" in Part 4 of the Prospectus and in the Application Form. The attention of Overseas Shareholders is drawn to paragraph 10 in Part 4 of the Prospectus and the warranty concerning Overseas Shareholders in paragraph 4(c) of Part 4 and in the Application Form.

Completed Application Forms accompanied by payment in full for the Offer Shares for which application is made by Qualifying Shareholders should be received by Capita Registrars as soon as possible and in any event by no later than 3.00 p.m. on 16 November 2005.

Action to be taken in respect of the Extraordinary General Meeting

Shareholders will find enclosed with the Prospectus a Form of Proxy for use in connection with the Extraordinary General Meeting. Whether or not Shareholders intend to be present at the Extraordinary General Meeting, they are asked to complete the Form of Proxy and return it in accordance with the instructions printed on it so as to be received by Capita Registrars at The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU as soon as possible but in any event no later than 11.00 a.m. on 19 November 2005. Completion of the Form of Proxy will not preclude Shareholders from attending and voting in person at the meeting should they so wish.

Recommendation and voting intentions

The Directors believe that the Proposals are in the best interests of the Company and its Shareholders as a whole. Accordingly, the Directors unanimously recommend Shareohlders to vote in favour of the Resolutions as they intend to do in respect of their own beneficial shareholdings which amount in aggregate to 14,196,887 Existing Ordinary Shares representing 2.97 per cent. of the Existing Ordinary Shares.

Expected timetable of principal events


2005


Record date for Open Offer close of business on 21 October


Latest time and date for splitting Application
Forms to satisfy bona fide market claims 3.00 p.m. on 14 November


Latest time and date for receipt of completed
Application Forms under the Open Offer 3.00 p.m. on 16 November
Latest time and date for receipt of Form of Proxy 11.00 a.m. on 19 November
Extraordinary General Meeting 11.00 a.m. on 21 November


Admission effective and dealings commence in existing and new Ordinary Shares of 1p each and (where applicable) CREST stock accounts credited with entitlements to Ordinary Shares of 1p
each 8.00 a.m. on 23 November


Despatch of definitive certificates for new Ordinary
Shares of 1p each by 30 November


Issue statistics


Issue Price 11p
Number of Ordinary Shares in issue on the Record Date 478,663,704


Number of new Ordinary Shares to be issued pursuant to the
Placing 47,318,183



NUMBER OF NEW ORDINARY SHARES TO BE ISSUED PURSUANT TO THE
Open Offer 9,573,274


NUMBER OF ORDINARY SHARES IN ISSUE ON ADMISSION 106,248,736

PERCENTAGE OF ENLARGED ISSUED SHARE CAPITAL UPON 9.01% Admission subject to the Open Offer

PERCENTAGE OF ENLARGED ISSUED SHARE CAPITAL UPON ADMISSION
subject to the Placing 44.54%

Gross proceeds of the Placing and Open Offer available to the
Company #6,258,060


Net proceeds of the Placing and Open Offer available to the
Company #5,873,060



MARKET CAPITALISATION ON COMPLETION OF THE PLACING AND OPEN OFFER
at the Issue Price #11.69 million


ASSUMES APPLICATION IN FULL UNDER THE OPEN OFFER AND DISREGARDS ANY EXERCISE OF outstanding options over Ordinary Shares between the Record Date and Admission.
Availability of the Prospectus

Copies of the Prospectus dated 26 October 2005 are available free of charge from the offices of Seymour Pierce Limited, Bucklersbury House, 3 Queen Victoria Street, London, EC4N 8EL, during normal business hours on any weekday (Saturdays, Sundays and public holidays excepted) and will remain available for at least one month after Admission.

Definitions

The following definitions apply throughout this announcement, unless the context otherwise requires:


"Admission" the admission of the entire issued ordinary share capital of
the Company, issued and to be issued pursuant to the Placing
and Open Offer, to trading on AIM becoming effective in
accordance with the AIM Rules
"AIM" AIM, a market operated by the London Stock Exchange
"AIM Rules" the AIM Rules for companies published by the London Stock
Exchange, as amended
"Applicant" an applicant for Offer Shares
"Application an application form relating to the Open Offer sent to
Form" Qualifying Shareholders with this prospectus
"Articles" the Articles of Association of the Company
"Basic the basic entitlement of Qualifying Shareholders to subscribe
Entitlement" for Offer Shares according to the number of Existing Ordinary
Shares held by them on the Record Date
"Board" or the board of directors of the Company


"Directors"


"Bonds" the bearer bonds of nominal value PLN 100 each constituted
according to the authority of an extraordinary general meeting
of CHI Polska dated 7 March 2003, further details of which are
set out in Part 2 of the Prospectus
"Capita a trading division of Capita IRG Plc


Registrars"


"central Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia,
Europe" Lithuania, Poland, Romania, Slovakia, Slovenia, Ukraine


"certificated" or not in uncertificated form (that is, not in CREST) "in certificated form"


"CHI Czech" CHI Czech s.r.o., a company incorporated in the Czech Republic
that is a wholly owned subsidiary of the Company
"CHI Polska" CHI Polska S.A., a company incorporated in Poland that is a
wholly owned subsidiary of the Company


"CHI Share Option the Company's existing unapproved employee share option scheme
Scheme" details of which are set out in paragraph 4 of Part 7 of the
Prospectus
"City Code" the UK City Code on Takeovers and Mergers


"coffeeheaven" the Company and/or any other member of the Group

"Coffee Nation" SIA Coffee Nation, a company incorporated in Latvia that is a
wholly owned subsidiary of the Company


"Combined Code" the Principles of Good Governance and Code of Best Practice
maintained by the Financial Reporting Council


"Companies Act" the Companies Act 1985, as amended


"Company" coffeeheaven international plc
"CREST" the computerised settlement system operated by CRESTCo Limited
which facilitates the transfer of shares
"CRESTCo" CRESTCo Limited


"CREST Member" a person admitted by CRESTo as (i) a system-member (as defined
in the CREST regulations); (ii) a personal member; or (iii) a
sponsored member
"CREST the Uncertificated Securities Regulations 2001 (SI2001/3755)
regulations" as amended from time to time
"Excess the arrangement pursuant to which Qualifying Shareholders may
Application apply for Offer Shares in excess of their Basic Entitlement as
Facility" detailed in Part 4 of the Prospectus and on the Application
Form
"Existing Ordinary Shares of 0.1p each in the capital of the Company in
Ordinary issue at the date of the Prospectus


Shares"

"Extraordinary the Extraordinary General Meeting of the Company convened by General Meeting" the notice to Shareholders set out at the end of the
or "EGM" Prospectus, and any adjournment thereof
"FSA" the Financial Services Authority
"FSMA" the Financial Services and Markets Act 2000, as amended
"Group" the Company and its subsidiary undertakings
"Issue Price" 11 pence per Ordinary Share


"LVL" or "Lats" Latvian Lats, the lawful currency of Latvia


"Management the option agreements dated 23 June 2005 and made between the
Option Company (1) and certain managers of the Group (2) further
Agreements" details of which are set out in paragraph 5 of Part 7 of the
Prospectus
"Offer Shares" up to 9,573,274 Ordinary Shares the subject of the Open
Offer
"Open Offer" the open offer being made by Seymour Pierce Limited, as agent
for the Company, to Qualifying Shareholders being an
invitation to subscribe for up to 9,573,274 new Ordinary
Shares of 1p each on the terms set out in the Prospectus and
the Application Form
"Ordinary ordinary shares of 0.1p each in the capital of the Company and
Shares" /or (as the context may require) ordinary shares of 1p each
following completion of the Proposals
"Overseas Shareholders with registered addresses in or who are citizens,


Shareholders" residents or nationals of, jurisdictions outside the United
Kingdom
"Placing" the placing by Seymour Pierce of 47,318,183 Placing Shares
"Placing the agreement dated 26 October (between the Company and
Agreement" Seymour Pierce, details of which are set out in paragraph 6 of
Part 7 of the Prospectus
"Placing the 47,318,183 Ordinary Shares to be issued in connection with
Shares" the Placing
"PLN" or Polish Zlotys, the lawful currency of Poland


"Zlotys"


"Proposals" the Placing, Open Offer and consolidation of the Ordinary
Shares of 0.1p each into Ordinary Shares of 1p each


"Prospectus" the document to Shareholders dated 26 October 2005 containing
details of the Proposals
"Qualifying holders of Existing Ordinary Shares on the register of members
Shareholder" of the Company on the Record Date, other than certain Overseas
Shareholders
"Record Date" close of business on 21 October 2005


"Resolutions" the resolutions to be proposed at the Extraordinary General
Meeting
"SEB" SEB Towarzystwo Funduszy Inwestycyjnych SA
"Seymour Seymour Pierce Limited, the Company's nominated adviser


Pierce"

"Shareholder" holder of Ordinary Shares

"undertificated" recorded on the relevant register of Ordinary Shares as being
or "in held in uncertificated form in CREST and title to which, by


uncertificated virtue of the CREST Regulations, may be transferred by means
form" of CREST


"United Kingdom" the United Kingdom of Great Britain and Northern Ireland or "UK"

"United States" the United States of America, its territories and possessions,
or "US" any state of the United States of America and the District of
Columbia
"USD" or "US United States dollars, the lawful currency of the United
Dollar" States
This information is provided by RNS
The company news service from the London Stock Exchange



END


IOEPKAKBFBDKQKB

Good news I would have thought to raise money through a placing and pay off all company outstanding debt. Then consolidate the share issue and not be a "penny share" All good long term but why the bloody drop in price.

Probably just a reaction to the share issue. I used to think that share issues were bad as they diluted my holding until someone pointed out that if a company issues 10 million quid in shares then you then hold a slightly smaller percentage of shares in a company which has 10 million quid more in cash than it did. The question is then whether you think they will spend the money wisely.

Also, I see the spread is back up to 12%. I'm very happy with the news of the consolidation as that should, as noted in the news article, help keep the spread down. May take advantage of the lower price to top up.

doug

I have a question for the more experienced. Does this passage below say that they will swap old for new at 1p each, therefore the mm's will drag the price down to reflect this?

The Company's middle market share price, as at the close of business on 24 October 2005, the latest practicable date before publication of the Prospectus, was 1.22p, with a 1.15p - 1.30p bid/offer spread. In order, inter alia, to reduce the bid/offer spread in the Ordinary Shares, which the Board believes currently hinders trading in the Existing Ordinary Shares, it is proposed to consolidate every 10 Existing Ordinary Shares of 0.1p each into one Ordinary Share of 1p.

My understanding is that it will also bring the company to the attention of the institutions, someone mentioned that they won't invest in companies below a certain cap... Anyway my take on it is that the company are moving forward, hopefully the money will be used on an aggressive expansion plan, also not the polish connection mentioned in the RNS, experience there to assist in the growth.

The mm's are having fun trying to flush out PI's to pick up stock, would expect the price to drop slightly on this news but hopefully recover once the new shares are listed.

IMHO.

No Ted1, 1p is the nominal value of each new share (irrelevant to us for all practical purposes), not its market value which will be 12.2p mid. Each existing share now worth 1.22p will be converted into a tenth part of each new share worth 12.2p.

The question I have, because I have only read the RNS quickly is - am I entitled to 1 in 50 of my existing number of shares, or 1 in 50 of the number I will have upon cosolidation (one tenth of the first version)? Anyone know the answer?

sd

This was in the uk analyst newsletter today

Coffeeheaven International saw its shares initially slide after the company announced details of a discounted fundraising - but the share recovered to finish unchanged at 1.225p. The company is proposing a share consolidation on the basis of 1 for 10 and a fundraising at 11p, or the equivalent of 1.1p in the old form. The operator of sandwich bars and coffee shops in central Europe, said it would raise 6.25 million pounds from a share placing and open offer. The group will raise 5.2 million pounds from the placing and the remainder from the open offer, with the funds being used to repay existing loans and provide working capital.