22 Aug 2008 13:42
22 August 2008
Avanti Screenmedia Group plc
("Avanti" or the "Company")
Subscription of new ordinary shares
Avanti, the AIM listed leading digital screen media specialist, announces today that Neo Media Group SA ("Neo Media") has subscribed for 17,636,363 new ordinary shares (the "Subscription Shares") at a price of 1.375p per share to raise a further £240,000 net of expenses (the "Subscription"). The Subscription has been undertaken to provide further working capital for the Company.
The Subscription Shares represent approximately 29.98 per cent. of the fully diluted share capital of the Company, as enlarged by the Subscription. The Subscription Shares will, when issued and fully paid, rank equally in all respects with the existing ordinary shares. It is expected that Admission will become effective and that trading in the Subscription Shares will commence on AIM at 8.00am on 29 August 2008. As a result of the Subscription the total issued share capital of the Company will increase to 58,822,436 ordinary shares.
This subscription follows the announcement of 18 July 2008 that Neo Media had subscribed for £300,000 by way of a convertible loan. As stated previously, Avanti will work with Neo Media to broaden the Company's market penetration and product offering, and to provide Neo Media with an entry into the UK market.
Neo Media is headquartered in Switzerland and currently operates in eight European countries, and in Canada, focusing on providing Digital Out of Home ("DOOH") solutions to shopping centres, hypermarkets, retailers and exhibition centres.
The Board considers that the Subscription is in the best interests of the Company and Shareholders as a whole.
The Company is in the process of finalising a number of new contracts and the Board anticipates that it will be in a position to give details of these contracts shortly.
Simon Rees, CEO of Avanti, commented,
"We are extremely pleased to have the support of Neo Media and we look forward to working closely with the company."
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 |