5th Feb 2009 12:22
05 February 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 secured further funding through the issue of £250,000 of convertible loans (the "New Convertible Loans").
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 which will require the issue of up to 25 million new ordinary shares.
The proceeds will be used to fund working capital for the Group.
As announced on 22 August 2008 Neo media holds approximately 29.98 per cent. of the fully diluted share capital of the Company and has previously subscribed for £1,300,000 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 137,636,363 ordinary shares representing up to a maximum of 77.0 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.
- 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 |
Websites:-
www.avanti-screenmedia.com
www.neoadvertising.com
Related Shares:
INC.L