Vision Media Group International | News
14th August 2007 Notice of AGM, strategic business update and further funding
ScreenFX plc (AIM:SFX), the digital advertising and communications specialist, confirms that the Group's Annual General Meeting will be held at the offices of Halliwells LLP, 1 Threadneedle Street, London, EC2R 8AY on 5 September 2007 at 12:30pm.
Business and funding update
The Group has received interest in its recently announced National Advertising Sales Agreement tender process. Combined with the recent progress of a new performance-driven local sales model, the Group therefore announces that the non-binding indication of interest with a major advertising company, as announced on 15 May 2007, has concluded and the Group will not be continuing talks in this regard.
Instead the Group will look to grow from its current 22 operating malls to the next 20 malls with whom it has firm commitments, taking the total to 42. The Group has a further 40 malls in the pipeline. As such, the Group is forecasting to have in excess of 60 malls installed by the end of 2008 which will deliver advertisers a means to access a total footfall of approximately one billion people per annum.
In order to cover operating expenses during this process, and to implement adjustments to the business model that are projected to bring the Group into reporting an operating profit by the end of 2008, the Group is seeking further funding by way of debt or equity of a minimum sum of £2.5 million plus costs. The Group has already secured indications of support in principle from certain existing institutional shareholders for £1.25 million towards the total needed. Approval needed for the further share placing is to be sought at the AGM with the Admission of the new ordinary shares expected to take place on 11 September 2007.
The Group also announces its intention to seek shareholder approval at the AGM for the consolidation of its ordinary shares. In the proposed consolidation, 100 old shares of ScreenFX common stock, with a value 0.1 pence each, will be exchanged for one new share, with a value of 10 pence each. Every 100 deferred shares of 0.1 pence each will also be exchanged for one new deferred share of 10 pence each.
The Directors will be underwriting the initial operating expenses of £125,000 during the early stages of the fund raising process by way of secured loans which will be converted post the fund raising into equity along with other Director and adviser loans which total a further £472,000.
Mike Cottman, Executive Chairman of ScreenFX, commented: "The delivery of top-line sales revenue, combined with the significantly reduced overheads should deliver a strong and valuable mall business in the future."
For further information:
| ScreenFX plc | |
| Mike Cottman, Executive Chairman | Tel: +44 (0) 161 428 5544 |
| mikec@screenfx.com | |
| Seymour Pierce Limited | |
| Stuart Lane / Sarah Jacobs, Corporate Finance | Tel: +44 (0) 20 7107 8000 |
| sarahjacobs@seymourpierce.com | www.seymourpierce.com |
Media enquiries:
| Abchurch | |
| Henry Harrison-Topham / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| henry.ht@abchurch-group.com | www.abchurch-group.com |
back to latest newsBack to top