We are amazed at how much publicity ScreenFX can get – if only companies that were doing so much better in the digital out of home industry got as much press interest, our industry sector would surely be in much better shape?
Kevin Feddy from the Manchester Evening News reports on tomorrow’s EGM for the company here and also reproduced below.
SHAREHOLDERS in digital advertising firm ScreenFX will tomorrow be asked to vote on a series of make-or-break proposals for the Cheadle-based, AIM-listed company.
ScreenFX, which lost £2.7m during the six months to June 30, wants investors to approve a ‘transformational’ acquisition and will seek their backing at an extraordinary general meeting in Manchester, after which founder and chief executive Dave Clark has agreed to step down.
It has signed heads of agreement to buy a business in a shares-only deal valued at more than £2m.
In addition, the board wants to shore up ScreenFX’s finances by raising £3m via a shares placing and by increasing existing loans from investment fund Trafalgar to £1.25m.
The board, led by chairman Mike Cottman, who joined in December last year and took a stake of more than 32 per cent, is warning that a rejection of the proposals would leave ScreenFX in ‘serious financial difficulty’ and could render it unable to continue as a going concern.
ScreenFX, which supplies advertising screens to shopping malls, is in advanced discussions over the acquisition and will change its name to Vision Media Group if the deal goes ahead.
Mr Cottman said: “This has the potential to be a transformational deal for ScreenFX and should further strengthen our ability to attract national advertising revenue to the group.”
The target business is an outdoor media contractor which provides advertising sites in theme parks and near convenience stores. It is also looking to introduce digital advertising in shopping malls in India.
Mr Cottman says the acquisition would enable the group to attract more revenue. In the six months to June 30 generated income of just £1.5m.
Mr Cottman hailed Mr Clark as an ‘industry pioneer’, but said he would step down after tomorrow’s EGM.
By the end of the week, if all goes to plan at the EGM, then ScreenFX will be no more in name but will have re-emerged as Vision Media Group.
We think that their web site holding page is already up – see http://www.visionmediagroup.com/