Just when you thought it was safe to go on AIM, VMG go and make an announcement that shocks everyone!
We are still looking at this in more detail but the private investors on iii are up in arms…
Vision Media calls EGM to discuss share capital reorganisation
AFX UK Focus
LONDON (Thomson Financial) – Vision Media Group (International) Plc. said it has called an extraordinary general meeting on June 2 to seek shareholder approval for a share capital reorganisation to help it raise future capital.
The outdoor media contractor said its current share price is proving to be a barrier to raising new capital, with shares trading at a level significantly below the current par value of 10 pence. The shares had a closing mid-market price of 5.75 pence on May 14.
The company said to proceed with its ongoing and future activities, it is therefore necessary to reduce the nominal value of the existing shares from the present level of 10 pence per share by increasing the company’s share capital to 20 million pounds from 11.6 million and then subdividing and reclassifying deferred and ordinary shares.
Vislink said that following the reorganisation, each new ordinary share will have a nominal value of 1 pence each and the number of shares held by shareholders will remain the same.