The trio of investors, who will sit as non-executives on the board of the former bathroom products company, have subscribed pounds 3.2m for 29.8 per cent of the shares, at 6p per share. Lionheart will raise another pounds 1m from a placing and pounds 1m through an open offer. The announcement confirmed that the three would also be granted warrants to subscribe for up to another 30 per cent of the enlarged share capital. They will be able to exercise the warrants up to 31 December 2002.
The news last month that the three high-profile investors were forming an investment vehicle out of the company sent the shares soaring 159 per cent from 11.5p to 29.75p. Their move followed hard on the heels of the equally electrifying reverse takeover of Knutsford by Archie Norman, the former Asda chairman.
Dealings in Lionheart shares on AIM are expected to begin on 17 January. Yesterday's announcement described the AIM listing as an "interim measure to facilitate the placing and open offer".