Live Company Regulatory News (LVCG)

1 Jul 2005 07:00

Parallel Media Group PLC30 June 2005 Parallel Media Group plc Issue of equity In the preliminary results of Parallel Media Group plc (the "Company") announcedtoday it was stated that the Company was proposing to raise between £750,000 and£1,100,000 by a new issue of convertible secured loan stock. Further to this announcement, the Board announces that a circular containingdetails of these proposals is being posted to Shareholders today. The circularexplains that, as a consequence of building the business, the Company requiresadditional working capital, and that the difficulties of earlier years have leftthe Group short of working capital to meet its day-to-day needs of head officeand quoted company expenditures. Every effort has been made to reduce centralcosts which are now at a minimum consistent with our remaining a publicly quotedcompany. Between £750,000 and £1,100,000 of new monies are being subscribed by newinvestors in the form of an issue of convertible secured loan stock. Agreementin principle has been reached for David Ciclitira (a director of the Company)and an independent investment company to subscribe £250,000 and £500,000 ofsuch loan stock respectively. In addition both David Ciclitira and Snowy Invest& Trade Inc ("Snowy") with which the chairman, Tan Sri Mohd Razali Abdul Rahman(chairman of the Company) is associated have agreed to convert, respectively, upto £250,000 and £94,603 of the existing indebtedness owed to them by the Companyinto the convertible loan stock referred to above. The convertible loan stock will have an approximate three year term, will bearinterest at Euribor plus 3% and will be convertible into new ordinary shares atthe rate of 1.5p per new ordinary share. David Ciclitira and Tan Sri Mohd Razali Adbul Rahman both have an interest inthe proposals and are deemed to be Related Parties as defined in Rule 13 of theAIM Rules. Keld Kristiansen, the independent director, having consulted withthe Company's nominated adviser, City Financial Associates Limited, considersthe terms of the investment by the Related Parties to be fair and reasonableinsofar as the Shareholders of the Company are concerned. This information is provided by RNS The company news service from the London Stock Exchange