(MRX.L) Metalrax Group PLC Buy/Sell

As part of this refinancing Metalrax has granted an equity warrant instrument to be issued in favour of HSBC Bank Plc and The Royal Bank of Scotland Plc for, in aggregate, 4.99% of the issued share capital at the time of exercise, with an exercise price of 5 pence per share.

In securing these banking facilities, the Board believes that it has obtained the necessary funding to enable the Group to continue as a going concern. The banking deal removes the risk of a material uncertainty as reported in the recent Interim announcement on 29 September 2009.

As a condition to Metalrax Group Pension Trustees Limited supporting the refinancing, Metalrax has provided security in its favour as trustee of the Metalrax Group Plc Pension and Life Assurance Plan.

John Crabtree, Chairman of Metalrax, commented:

"The completion of the refinancing puts Metalrax on a strong footing for the future. This year's trading has been difficult, reflecting the general economic climate. However we have made good progress in our strategy to refocus the Company and now, with the support of our banks, we can continue the turnaround."

Following the successful completion of the refinancing, Metalrax also announces that Michael Stock, Group Finance Director and Company Secretary, will be leaving the Company on 31 October 2009 as part of the restructuring of central overheads. Michael will not be replaced and his responsibilities will be assumed by Group Financial Controller, Nick Longley ACA, and Director of Finance - Operations, Ian Flavell FCMA.

Andrew Richardson, Chief Executive Officer of Metalrax, said:

"Michael has successfully led the completion of this major refinancing, the restructuring of the Group's financial processes as well as building a capable finance team. I would like to thank him for his excellent contribution and wish him all the best for the future".

For further information:

Metalrax Group PLC Andrew Richardson, Chief Executive 0121 433 8961

Arden Partners
Steve Douglas 0121 423 8900

Hogarth Partnership
Andrew Jaques 020 7357 9477

Rachel Hirst

This information is provided by RNS The company news service from the London Stock Exchange

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