9th Oct 2008 18:04
9 October 2008
Avanti Screenmedia Group plc
("Avanti" or the "Company")
(AIM: ASG.L)
Funding update
Avanti, the AIM listed leading digital screen media specialist, announces today that the Company has issued a convertible loan of £500,000 (the "New Convertible Loan") to Neo Media Group SA ("Neo Media").
The New Convertible Loan carries an annual interest rate of 10% percent and is due to be repaid or converted 12 months from issue.
The New Convertible Loan is convertible at a price of 2p per share which, if fully converted, will require the issue of 25 million new ordinary shares.
The proceeds of the new Convertible Loans are to be used to expand Avanti's networks.
As announced on 22 August 2008 Neo Media holds approximately 29.98 per cent. of the fully diluted share capital of the Company and had subscribed previously for £300,000 by way of a convertible loan with terms identical to the Convertible Loan. 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.
The Board considers that the Subscription is in the best interests of the Company..
- 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 |
Related Shares:
INC.L