Business
Placing to raise £70,000
Placing to raise £70,000.
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 £70,000\n\nMediaZest, the creative digital audio-visual company, is pleased to announce that it has conditionally raised £70,000 (before expenses) through a placing arranged by Hybridan LLP of 46,668,000 new ordinary shares of 0.1p each (“Ordinary Sharesâ€) with existing investors (the “Placing Sharesâ€) at a price of 0.15p per Ordinary Share (the “Placing Priceâ€).\n\nBackground to the Placing\n\nFurther to the announcement of Mediazest’s interim results on 15 December 2017, the Group continues to make progress and is in advanced negotiations on several material contracts. The timing of the closure of these contracts will have an effect on the year end results as referred to in that announcement. In addition, the Company continues to grow its contracted recurring revenue base and the Board anticipates announcing a significant increase in this year on year with the 31 March 2018 results.\n\nThe reasons for the placing are hence twofold.\n\nReasons for the Placing\n\nThe Company is becoming more focussed on dealing with large, complex global organisations. This has led to a need to keep a proportion of operating cashflow earmarked for deposit purposes with suppliers. In order to fully take advantage of two specific, recently won opportunities, and others that are still at the pitch or negotiation stage, the Board has decided to execute this small fundraise to meet these requirements.\n\nIn addition, the Digital Signage market continues to grow and with the ongoing improvement in Group performance, the Board believes that there are strategic growth opportunities that should be explored and an element of the Placing funds will be set aside for this purpose.\n\nThe Board is aware of the dilutive nature of any fundraising at the current share price and as such has limited the amount raised to cover these two requirements only, with a handful of existing long term shareholders.\n\nDetails of the Placing\n\nThe Placing Shares 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 Placing Shares to tradi...