Business
Proposed Placing and Loan Interest Conversion
Proposed Placing and Loan Interest Conversion.
About this update from Mediazest Plc
[{"type":"text","content":"\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR\nINDIRECTLY, IN, INTO OR FROM THE UNITED STATES, JAPAN, CANADA, AUSTRALIA, THE\nREPUBLIC OF SOUTH AFRICA OR THE REPUBLIC OF IRELAND OR ANY OTHER JURISDICTION\nWHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF\nSUCH JURISDICTION.\n\n13 December 2013\n\n MediaZest Plc \n\n (\"MediaZest\", the \"Company\" or \"Group\"; AIM: MDZ) \n\n Proposed £865,000 Placing and £166,719 Loan Interest Conversion \n\n Trading update and expected Interim Results \n\nMediaZest, the creative digital out-of-home advertising company, is pleased to\nannounce that it has conditionally raised £865,000 (before expenses) through a\nplacing of 247,142,800 new Ordinary Shares with existing and new institutional\ninvestors arranged by Hybridan LLP and that, in addition, it proposes to issue\n47,479,714 new Ordinary Shares through the conversion of loan interest\namounting to £166,179, in each case at a price of 0.35p per Ordinary Share. The\nIssue Price represents an approximate 11.4 per cent. discount to the closing\nmid-market price of 0.395p per Ordinary Share on 12 December 2013 (being the\nBusiness Day before the announcement of the Proposals).\n\nBackground to and reasons for the Placing and the Loan Interest Conversion\n\nThe Group has made progress in the last 12 months through winning a significant\ncontract with a large multinational brand. This development has enabled the\nGroup to improve its financial performance and provides numerous ongoing\nopportunities to continue to improve it further in the coming years.\n\nTo this end, the Board believes that further investment is required to allow\nthe Company to take advantage of the opportunities before it.\n\nIn particular, the Board believes it is in the best interests of the Company\nand Shareholders as a whole to raise additional funding in order to achieve the\nfollowing:\n\n 1. Retire a further proportion of shareholder loans\n \nAs at 11 December 2013, the Group had aggregate loan principal and interest\nindebtedness of £546,179 owing to City and Claremont Capital Assets Ltd and to\nEP&F Capital plc.\n\nThese loans carry annual interest rate coupons of between 10 per cent. and 20\nper cent. Interest payments in the last financial year ended 31 March 2013\namounted to £138,000, a s...