11th Jun 2008 11:56
11 June 2008
Avanti Screenmedia Group plc
("Avanti" or the "Company")
Funding update
As previously announced, the Company has been seeking funding to meet its short term working capital requirements and longer term development plans. Following a strategic review, the Board of Avanti has decided to focus on the leisure, retail and creative services businesses, which include the Setanta and Spar contracts.
The Board is now pleased to confirm that the Company is in advanced discussions to sell certain parts of its business which, as a result, will resolve the short term funding requirement of the Company, reduce the Company's ongoing working capital requirement and allow the management to focus on the leisure, retail and creative services businesses in line with its strategy. However finalising these discussions remains critical to the future prospects of the Company.
Furthermore, the Board has agreed to secure any immediate funding requirement with certain of the Directors investing an aggregate of £100,000 by way of loans, which are due to be repaid by the 31 July 2008, or in the event they are not repaid, are convertible at the price of 2.5p (the "New Convertible Loans"). Subscriptions from the Directors are as follows; Simon Rees £25,000, Gary Truman £25,000 and Richard Vos £50,000. The New Convertible Loans carry an annual interest rate of 10 per cent. The New Convertible Loans if fully converted, will require the issue of up to 4 million new ordinary shares. Full details of the New Convertible Loans will be announced in due course, and details will be set out in a circular to shareholders that will also contain notice of a General Meeting at which Shareholders will be asked to approve the issue equity pursuant to the New Convertible Loans in the event that they have not been repaid by 31 July 2008.
In addition, previous convertible loans totalling £100,000, issued to certain of the Directors on the 26 September 2007, (the "Existing Convertible Loans") are due for repayment, however the terms have been extended and the conversion price has been adjusted on the same basis as those convertibles, issued to certain shareholders, as previously announced on 3 June 2008. The Existing Convertible Loans, if converted, will require the issue of approximately 4.0 million new ordinary shares.
The Directors' Shareholdings are detailed below:-
|
Director |
Number of Ordinary Shares |
Percentage of existing issued share capital |
Number of shares issued upon conversion of Existing Convertible Loan |
Number of shares issued upon conversion of New Convertible Loan |
Total following conversion of all loans |
Percentage holding following conversion of all outstanding loans |
|
Michael Desmond |
- |
0.0% |
298,507 |
- |
298,507 |
0.5% |
|
Simon Rees |
2,500 |
0.0% |
1,000,000 |
1,000,000 |
2,002,500 |
3.0% |
|
Gary Truman |
314,107 |
0.76% |
3,000,000 |
1,000,000 |
4,314,107 |
6.6% |
|
Richard Vos |
1,900 |
0.0% |
- |
2,000,000 |
2,001,900 |
3.0% |
The independent Director, Mr Michael Desmond, who is not participating in the funding, having consulted with the Company's Nominated Adviser, considers the terms of the transaction to be fair and reasonable in so far as the Company's shareholders are concerned.
It is anticipated that a further announcement on the Company's funding position will be made shortly and full details will be sent to shareholders in due course.
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