31st Jul 2009 12:59
31 July 2009
ASG Media plc
("ASG" or the "Company") (AIM: ASG.L)
Funding update
ASG Media, the AIM listed leading digital screen media specialist, announces today that the Company has secured further funding through the issue of £75,000 of convertible loans (the "New Convertible Loans") to Neo Media Group SA ("Neo Media").
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 per share which will require the issue of up to 7,500,000 new ordinary shares.
The proceeds will be used to provide further working capital.
As announced on 14 July 2009 Neo Media holds approximately 29.4 per cent. of the issued share capital of the Company and has previously subscribed for £1.9m of other convertible loans. As such the transaction is under Rule 13 of the AIM Rules a related party transaction. The Directors, consider, having consulted with its nominated adviser Charles Stanley Securities, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Upon full conversion of the existing convertible loans and the New Convertible Loans Neo Media would own 180,136,363 ordinary shares representing up to a maximum of 61.2 per cent of the Company's enlarged issued share capital.
The Board considers that the subscription for the New Convertible Loans is in the best interests of the Company and Shareholders as a whole details of an EGM to approve the issue of new shares will be sent to shareholders in due course.
Enquiries:
|
ASG Media plc Jamie Ball, Managing Director Gary Truman, CFO |
020 7902 2345 |
|
Charles Stanley Securities Nominated Adviser Russell Cook/Freddy Crossley |
020 7149 6000 |
|
Bishopsgate Communications Limited Robyn Samuelson/Siobhra Murphy |
020 7562 3355 |
Related Shares:
INC.L