Placing to raise £250,000

About this update from Mediazest Plc

[{"type":"text","content":"\n \nMediaZest Plc\n\n(\"MediaZest\", the \"Company” or “Group\"; AIM: MDZ)\n\nPlacing to raise £250,000\n\nMediaZest, the creative audio-visual company, is pleased to announce that it has raised £250,000 (before expenses) through an oversubscribed placing of 166,666,800 new ordinary shares of 0.1p each (“Ordinary Shares”) with existing and new institutional investors (the “Placing Shares”) arranged by Hybridan LLP and that, in addition, it will issue 33,333,333 new Ordinary Shares to City and Claremont Capital Assets Ltd following the conversion of loan interest amounting to £50,000 (the “Conversion Shares”), in each case at a price of 0.15p per Ordinary Share (the “Issue Price”). The Issue Price is the price that the market bid price was at closing on 10 May 2016 (being the Business Day before the announcement of the placing).\n\nReasons for the Placing\n\nThe Group has made significant progress over the last 12 months and finished the year ended 31 March 2016 with its best ever financial performance. The net funds raised will be used to help deliver current and future projects for existing clients including Hyundai, Adidas, HMV, Diesel and Kuoni.\n\nThe funds will also provide MediaZest with additional working capital and will help the Company to develop new business opportunities and expand the client base as it looks to build upon recent success and implement its key growth strategy of building a more consistent and recurring income base.\n\nIn addition, the conversion of £50,000 of outstanding interest will further reduce the amount of shareholder debt owed by the Company and strengthen the balance sheet. Following this conversion, City and Claremont Capital Assets Ltd will hold 192,231,176 Ordinary Shares in the Company which represents 15.5% of the Company’s enlarged issued share capital.\n\nNew shares\n\nThe 200,000,133 Placing Shares and Conversion Shares which are to be issued will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued.\n\nApplication will be made for admission of the 200,000,133 Placing Shares and Conversion Shares to trading on AIM (“Admission”) and it is expected that Admission will be effective on or...

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