Neo Advertising rode to the rescue of Avanti Screen Media Friday morning when it was announced that they had (effectively) invested UK PDS 300K into the company.
It’s perhaps a sad reflection of the state that Avanti is in that UK PDS 300,000 can buy you over 42% of the business but that very much seems to be life on the UK’s Alternative Investment Market (AIM) at the moment for Digital Out of Home companies.
Avanti’s stock initially rose +262.50% (yes two hundred per cent) on the announcement though it fell back during the day – mind you it still closed up significantly from the doldrums it has been in recently!
Avanti Screenmedia says Neo Media subscribes to 300,000 pounds of conv notes
AFX UK Focus
LONDON (Thomson Financial) – Avanti Screenmedia Group Plc. said it has secured further funding through the issue of 400,000 pounds of convertible loans, and added that digital out of home group Neo Media Group SA has subscribed for 300,000 pounds of the new convertible loans.
Neo Media’s subscription, upon conversion, will represent up to 42.1 per cent of the total voting rights of the company.
The digital screen media specialist said it has terminated its advanced discussions to sell certain parts of its business due to the new relationship with Neo Media.
The new convertible loans carry an annual interest rate of 10 percent and are due to be repaid or converted in 12 months. If converted, these convertible loans carry a conversion price of 1 pence, requiring the issue of up to 40 million new shares.
We will be writing about this further over the course of the next few days.
The deal with Vision Media Group International plc (VMG) whereby they were to buy the Malls (except Bluewater) from Avanti has been terminated though we think there may still be something around this – another deal if you like in the pipeline in some other form.
It should be an interesting week.