Business
Investment in Izimi Limited
Investment in Izimi Limited.
About this update from Blue Star Capital Plc
[{"type":"text","content":"\n Blue Star Capital plc\n12 September 2006\n\n\n12 September 2006\n\n BLUE STAR CAPITAL PLC\n\n ('Blue Star' or 'the Company')\n\n Investment of £150,000 through a convertible loan in Izimi\n\nBlue Star Capital plc (AIM: BLU), the Company created to provide seed capital\nfor early stage companies, is pleased to announce an investment in Izimi Limited\n('Izimi'), the innovative web-based software company that is currently\ndeveloping a peer to peer (P2P) social networking computer application.\n\nIzimi is being led by an exceptional management team that has substantial\nexperience in the management of technology-based start-ups and their growth into\nlarge companies. The team includes Nigel Robertson and Chris Chedgzoy founders\nof ScootTM, the online classified directory, which grew into an international\nbusiness with a London Stock Exchange listing. ScootTM was ultimately acquired\nby British Telecom.\n\nIzimi's applications are currently in a beta-testing phase, with an expected\nlaunch in early 2007. As such, the company is not yet revenue generating. Since\nits incorporation on 14 September 2005 Izimi has incurred development losses of\n£266,460. As at 30 July 2006 the company had net assets of £101,534.\n\nBlue Star has made an investment of £150k, as part of a total investment of\n£575k through a convertible loan which carries an annual interest rate of 7% and\nwhich can be converted into ordinary shares of the Company at any time up to 31\nDecember 2007.\n\nUnder the terms of the conversion the loans are, in aggregate, convertible into\nsuch number of ordinary shares in Izimi as represent 13% of the enlarged\nordinary share capital of Izimi at the time of conversion.\n\nNigel Robertson, Blue Star's Chairman, is a shareholder and director of Izimi.\nThe proposed investment by Blue Star in Izimi is, accordingly, deemed to be a\nrelated party transaction under the AIM Rules.\n\nHaresh Kanabar, has no connections with Izimi and is therefore independent of\nthe transaction. Mr Kanabar considers, having consulted with Teather & Greenwood\nLimited, that the terms of the transactions are fair and reasonable insofar as\nBlue Star's shareholders are concerned.\n\nHaresh Kanabar commented 'Our proposed investment in Izimi, with its planned\nblend of revenue generating channels including display advertising and\ncommission...