Avanti Screenmedia Raises £175,000
Adrian J Cotterill, Editor-in-Chief
Avanti Screenmedia today announced on the UK’s Alternative Investment Market (AIM) that it had secured (some) funding and restructured it’s short-term debt.
It raised UK PDS 175,000 pounds via an issue of a convertible loan and restructured UK PDS 119,250 pounds of existing short-term liabilities into convertible loans.
The market took it badly, marking its stock down 18.18% at the time of writing.
The company added that it continues to seek more funding to meet its short-term working capital needs and for longer term development plans.
RNS Number : 7944V Avanti Screenmedia Group PLC 03 June 2008
3 June 2008
Avanti Screenmedia Group plc
(“Avanti” or the “Company”)
Funding update
The Board of Avanti confirms that the Company has secured commitments for a total of £175,000 through the issue of a convertible loan (the “New Convertible Loans”). To date, £125,000 of the New Convertible Loans have been issued, and the remaining £50,000 are expected to be issued shortly. The Company has also restructured £119,250 of existing short term liabilities into convertible loans on similar terms, details of which are set out below.
The New Convertible Loans carry an annual interest rate of 10 per cent. and are due to be repaid or converted in 6 months. The New Convertible Loans are convertible at a price of 2.5p per new ordinary share which, if fully converted, will require the issue of up to 7 million new ordinary shares.
In addition, £200,000 of the convertible loans, issued on the 26 September 2007, (the “Existing Convertible Loans”) have been replaced by further New Convertible Loans with a conversion price of 2.75p which, if converted, will require the issue of approximately 7.3 million new ordinary shares. The Existing Convertible Loans were convertible at 8.375p per new ordinary share,
In addition current liabilities of £119,250 have been exchanged into two further convertible loans (the “Secondary Convertible Loans”), on terms similar to the New Convertible Loans, which carry an annual interest rate of 10 per cent.. £59,625 is convertible at a price of 2.5p per new ordinary share and a further £59,625 is convertible at a price of 5p per new ordinary share, with terms of 6 months and 12 months respectively. If converted, the Secondary Convertible Loans will require the Company to issue approximately 3.8 million new shares.
In aggregate the New Convertible Loans and the Secondary Convertible Loans if converted in full will require the issue up to 17.85 million new ordinary shares representing approximately 30 per cent of the enlarged issued share capital of the Company.
Full details of the New Convertible Loan 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.
Meanwhile the Company continues to seek further funding to meet the Company’s short term working capital requirement and longer term development plans.
Follow DailyDOOH