30 Jun 2009 12:03
30 June 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").
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.
Neo Media Group SA has today committed a further £100,000 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 10 million new ordinary shares (the "Neo Media Subscription"). Following the Neo Media Subscription, Neo Media will hold 17,636,363 ordinary shares, representing 14.1 per cent of the enlarged issued share capital, and convertible loans which upon full conversion will require the issue of a further 155,000,000 new ordinary shares. Upon full conversion of their convertible loan notes Neo Media will own up to a maximum of 61.7 per cent of the Company's enlarged issued share capital.
In addition the Board is pleased to announce that Dr Moe Bakarat and Novra Technologies Inc have converted their respective loans totaling £376,820 into 36,345,600 ordinary shares. Dr Moe Bakarat now holds 36,000,000 ordinary shares being 28.8 per cent of the Company's share capital with Novra holding a further 10,691,200 being 8.6 per cent of the Company's share capital. The conversion will reduce the overall level of borrowings within the Group. In addition the interest due on the loans to Dr Moe Bakarat has been converted into a further Convertible Loan Note totaling £40,285 which will be repaid or converted in 2 months time.
Accordingly application has been made for the 36,345,600 new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 6 July 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 125,013,636 ordinary shares of 1 pence each. A total of £ 2.1m Loan Notes remain in issue.
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.
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Enquiries:
| Avanti Screenmedia Group plc Gary Truman, Chief Finance Officer | 020 7902 2345 |
| Charles Stanley Securities Nominated Adviser Russell Cook / Freddy Crossley | 020 7149 6000 |
| Bishopsgate Communications Limited Maxine Barnes | 020 7562 3355 |