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11 Jun 2008 11:56
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11Β JuneΒ 2008
Avanti ScreenmediaΒ Group plcΒ
("Avanti" or the "Company")
Funding update
As previously announced,Β theΒ Company has been seeking fundingΒ toΒ meetΒ its short term working capital requirementsΒ and longer term development plans. Following a strategic review,Β the Board ofΒ AvantiΒ hasΒ decided to focus on theΒ leisure,Β retailΒ and creative servicesΒ businesses, which include the Setanta and Spar contracts.Β
The BoardΒ is now pleased toΒ confirm thatΒ theΒ CompanyΒ is inΒ advancedΒ discussionsΒ to sellΒ certainΒ partsΒ ofΒ itsΒ businessΒ which,Β as a result,Β willΒ resolve theΒ short term funding requirementΒ of the Company, reduce the Company's ongoing working capital requirement and allow the management to focus on theΒ leisure,Β retailΒ and creative servicesΒ businessesΒ in line with its strategy.Β Β However finalising these discussions remains critical to the future prospects of the Company.Β
Furthermore,Β the Board has agreed to secure any immediate funding requirementΒ withΒ certain of theΒ DirectorsΒ investing an aggregateΒ ofΒ Β£100,000Β by way ofΒ loans,Β which areΒ due to be repaid by the 31 JulyΒ 2008, or in the eventΒ they areΒ not repaid,Β areΒ convertibleΒ atΒ the priceΒ ofΒ 2.5pΒ (the "New Convertible Loans").Β SubscriptionsΒ from the Directors are as follows;Β Simon Rees Β£25,000, Gary Truman Β£25,000 and Richard Vos Β£50,000.Β TheΒ New ConvertibleΒ Loans carry an annual interest rate of 10 per cent. TheΒ NewΒ ConvertibleΒ Loans if fully converted, will require the issue of up toΒ 4Β million new ordinary shares.Β Full details of theΒ NewΒ ConvertibleΒ LoansΒ will be announced in due course,Β andΒ details will be set out in a circular to shareholders that will also contain notice of a General Meeting at whichΒ Shareholders will be asked to approve theΒ issue equity pursuant to theΒ NewΒ ConvertibleΒ LoansΒ in the event that they have not been repaid by 31 July 2008.
In addition,Β previous convertible loansΒ totalling Β£100,000, issued toΒ certain of theΒ Directors on the 26 September 2007, (the "Existing Convertible Loans")Β are due for repayment, however the terms have been extended and the conversion priceΒ hasΒ beenΒ adjusted on the same basis as thoseΒ convertibles,Β issued to certain shareholders, asΒ previously announced on 3 JuneΒ 2008. The Existing Convertible Loans, if converted, will require the issue of approximatelyΒ 4.0Β million new ordinary shares.
The Directors' Shareholdings are detailed below:-Β
|
Director |
Number of Ordinary Shares |
Percentage of existingΒ issuedΒ share capital |
Number of shares issued upon conversion of Existing Convertible Loan |
Number of shares issued upon conversion of New Convertible Loan |
Total following conversion of all loans |
Percentage holding following conversionΒ of all outstanding loans |
|
Michael Desmond |
- |
0.0% |
298,507 |
- |
298,507 |
0.5% |
|
Simon Rees |
2,500 |
0.0% |
1,000,000 |
1,000,000 |
2,002,500 |
3.0% |
|
Gary Truman |
314,107 |
0.76% |
3,000,000 |
1,000,000 |
4,314,107 |
6.6% |
|
Richard Vos |
1,900 |
0.0% |
- |
2,000,000 |
2,001,900 |
3.0% |
The independent Director, Mr MichaelΒ Desmond,Β who is notΒ participatingΒ in the funding,Β having consulted with the Company's NominatedΒ Adviser,Β considers the terms of the transactionΒ to beΒ fair and reasonable in so far as the Company's shareholders are concerned.
It is anticipated that a further announcementΒ onΒ the Company'sΒ funding positionΒ will be madeΒ shortlyΒ and full details will be sent to shareholders in due course.
Enquiries:
|
Avanti ScreenmediaΒ Group plcΒ Simon Rees, Chief Executive Gary Truman, Finance Director |
020Β 7902 2345 |
|
Charles Stanley SecuritiesΒ Nominated Adviser Russell Cook / Freddy CrossleyΒ |
020 7149 6000 |
|
Bishopsgate Communications Limited Jenni Herbert |
020 7562 3355 |
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