18 Jul 2008 12:41
18 July 2008
Avanti Screenmedia Group plc
("Avanti" or the "Company")
(AIM: ASG.L)
Funding update
Avanti Screenmedia Group plc, the AIM listed leading digital screen media specialist, announces today that, following its EGM at which the resolutions, including the authority to directors to issue up to 100,000,000 new ordinary shares, were duly passed, the Company has secured further funding through the issue of £400,000 of convertible loans (the "New Convertible Loans").
The New Convertible Loans carry an annual interest rate of 10% percent and are due to be repaid or converted in 12 months.
If converted, the New Convertible Loans carry a conversion price of 1p which will require the issue of up to 40.0 million new ordinary shares.
Neo Media Group SA ("Neo Media"), a leading digital out of home (DOOH) group with operations across Europe and Canada, has subscribed for £300,000 of the New Convertible Loans which, upon conversion, will represent up to 42.1 per cent of the total voting rights of the Company.
Avanti anticipates that it will work closely with Neo Media to broaden both its market penetration and product offering through clear synergies of expertise and opportunity. Neo Media is headquartered in Switzerland and currently operates in eight European countries, and in Canada, focusing on providing DOOH solutions to shopping centres, hypermarkets, retailers and exhibition centres. Through its investment in Avanti, Neo Media will obtain entry into the UK market and access to Avanti's significant client base.
Avanti has been in discussions with Neo Media over several months and the investment is triggered by the successful execution of phase one of the Company's new strategy of re-structure, cost reduction, new creative services and advertising sales growth.
Avanti previously announced that the Company was in advanced discussions to sell certain parts of its business to allow the management to focus on the leisure, retail and creative services businesses. The Company has now terminated these discussions as a result of the new relationship with Neo Media.
Simon Rees, CEO of Avanti, commented, "Both Avanti and Neo Media are leaders in digital out of home solutions in their own countries. Today's announcement follows nine months of extensive and successful restructuring of the Company. The Board is confident that Neo provides an excellent strategic fit for Avanti's plans for the future. We see this alignment as the start of further consolidation of the digital out of home sector, both locally and internationally."
- 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 |
Websites:-
www.avanti-screenmedia.com
www.neoadvertising.com