Sign In
28 Apr 2009 15:18
28 April 2009
Avanti Screenmedia Group plc
("Avanti" or the "Company") (AIM: ASG.L)
Funding update
Avanti, the leading digital screen media specialist, announces that it has secured further short term funding from Neo Media Group SA ("Neo Media"). The Company also announces further significant account wins.
The Company has won new contracts for three shopping malls at Trafford Centre, Manchester, Gloucester Quays, Gloucester and Paradise Forum, Birmingham. Avanti now has contracts with 38 shopping malls in the UK, including 4 in the Top 7 (source: TWA ranking 2008) with a weekly audience of over 9.3 million.
These further contract wins follow the new account wins that were announced last month. However, the higher level of activity carries an increased level of capital expenditure and greater working capital requirement. As announced previously the Board of Avanti is continuing to seek further short term funding to meet the Company's immediate working capital requirement as well as to finance the further growth and development of the business. In order to aid the Company's funding requirement the Directors have agreed to convert all of their Convertible Loan Notes into ordinary shares, as set out below. The Convertible Loan Notes were subscribed at £1 each, and are convertible at 1p per new ordinary share. While this has no direct cash benefit to the Company, conversion will reduce the overall level of borrowings within the Group which the Board anticipates will aid the Company in its search for further funding.
|
Convertible Loan Notes |
New ordinary shares on conversion |
Resulting shareholding |
% holding |
|
|
Gary Truman |
£100,000 |
10,000,000 |
10,314,107 |
11.63 |
|
Simon Rees |
£50,000 |
5,000,000 |
5,002,500 |
5.64 |
|
Richard Vos |
£50,000 |
5,000,000 |
5,001,900 |
5.64 |
|
Michael Desmond |
£25,000 |
2,500,000 |
2,500,000 |
2.82 |
Furthermore, the Board is pleased to announce that Neo Media has committed a further £250,000 to the Company through subscription for further Convertible Loan Notes which, when converted at the 1p per share conversion price, will require the issue of a further 25 million new ordinary shares (the "Neo Media Subscription"). Following the Neo Media Subscription, Neo Media will hold 17,636,363 ordinary shares, representing 19.89 per cent of the enlarged issued share capital, and convertible loans which upon full conversion will require the issue of a further 145,000,000 new ordinary shares. Upon full conversion of their convertible loan notes Neo Media will own up to a maximum of 69.61 per cent of the Company's enlarged issued share capital.
The Directors, having consulted with Charles Stanley Securities, believe that the terms of the Neo Media Subscription are fair and reasonable so far as shareholders are concerned. The Directors reiterate that while the Neo Media Subscription meets the Company's immediate working capital requirements the Company is continuing to seek further short term funding.
Application has been made for the 22,500,000 new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 5 May 2009. The new ordinary shares will rank pari passu with the existing shares of the Company. Following this issue the total issued share capital of the Company will increase to 88,636,036 ordinary shares of 1 pence each. A total of £2.3m Loan Notes remain in issue.
- ENDS -
Enquiries:
|
Avanti Screenmedia Group plc Simon Rees, Chief Executive Gary Truman, Finance Director |
020 7902 2345 |
|
Charles Stanley Securities Nominated Adviser Russell Cook / Freddy Crossley |
020 7149 6000 |
|
Bishopsgate Communications Limited Jenni Herbert |
020 7562 3355 |
Follow the stocks
