PEGG Capital AG (PEGG) (FRANKFURT: PGU), a corporate advisory, commercialization and investment group focusing in the areas of information and communication technology (ICT) and other innovative technologies, is pleased to announce that it is has signed a Letter of Intent ("LOI") for a $5MM USD investment from a US-based private equity firm ("the Investor"). The due diligence process is to start immediately and expected to last 30 to 60 days. Upon the successful completion of due diligence, the Investor will invest $5MM USD into PEGG Capital AG. Due to confidentiality agreements, the details of the investment will not be available for public release until final definitive agreements are executed between PEGG and the Investor.
Additionally, the Investor intends to participate in the funding of the $100MM PEGG/Gramercy "Asia Brand-Tech™ Fund" by investing a minimum of a further $5MM USD into this fund. The "Asia Brand-Tech™ Fund" plans to complete limited partner investments within the next 30 to 60 days. The Fund is managed by Gramercy Private Equity. PEGG is the major external shareholder of Gramercy and the companies expect to merge during 2011. "Asia Brand-Tech™ Fund" is focused on cross border technology investments between Asia and the US.
Mr. David Daniel, Managing Director of PEGG and PEGG Capital AG, and Mr. Michael Gale, Director of PEGG Capital AG and Managing Partner of Gramercy Private Equity and The "Asia Brand-Tech™ Fund," jointly commented, "We have been building a relationship and getting to know the Investor and their network for most of the year, and vice versa. We are very excited and pleased that they are firmly committed to moving forward with an investment into our future. We envision that using this capital will expand our business base and prepare us to complete the intended process of merging PEGG and Gramercy as well as affecting our intended US Listing in 2011 to complement our German listed entity."
ABOUT PEGG CAPITAL
PEGG Capital AG (PEGG) is a Frankfurt-listed, publicly-traded investment and advisory group specializing in investing in information communication, telecommunications and other innovative technologies. PEGG identifies portfolio companies that adhere to specific fundamentals and business criteria to enhance shareholder value for PEGG and its shareholders. PEGG covers a broad range of opportunities focused on translating innovative projects into commercial reality through funding support, hands-on assistance, and leveraging cross-border opportunities. PEGG is headquartered in the Isle of Man with major North American operations in New York, San Francisco & Beijing, through its Gramercy interests, and satellite offices in London and Melbourne.
About Gramercy Private Equity
Gramercy Private Equity is the private equity arm of Gramercy Venture Advisors, the category defining technology merchant bank. Drawing on the resources of Gramercy Venture Advisors and its global relationships, Gramercy Private Equity is able to be a very hands-on investor and add significantly to the strategy and its execution for portfolio companies. Gramercy Private Equity likes to invest at the intersection of proven technology and global expansion.
CONTACT: PEGG Corporate Contact Information Mr. Michael Gale Director Tel: 415-378-7364 mgale@peggeu.com or Mr. David Daniel Managing Director Tel: +44 (0) 7624 350 484 david@peggeu.comPrivate Equity Gateway Group (EU) Ltd. (IoM registered Co. # 123009C) 11 Hope Street Douglas Isle of Man, British Isles IM1 1QD www.peggeu.comPEGG Capital AG: (German Registered Co. # HRB 67740) Stock Code "PGU" Aachener Strasse 619 50933 Cologne Germany INVESTOR RELATIONS: Cooper Global Communications, LLC Mr. Richard E. Cooper President rcooper@cgc-us.com Ms. Jennifer K. Zimmons, Ph.D. Managing Director jzimmons@cgc-us.com Tel: 212-317-1400 www.cooperglobalcommunications.com