MediaZest Plc
("MediaZest", the "Company” or
“Group"; AIM: MDZ)
Placing to raise
£70,000
MediaZest, the creative digital audio-visual company, is pleased
to announce that it has conditionally raised £70,000 (before
expenses) through a placing arranged by Hybridan LLP of 46,668,000
new ordinary shares of 0.1p each (“Ordinary Shares”) with existing
investors (the “Placing Shares”) at a price of 0.15p per Ordinary
Share (the “Placing Price”).
Background to the Placing
Further to the announcement of Mediazest’s interim results on
15 December 2017, the Group continues
to make progress and is in advanced negotiations on several
material contracts. The timing of the closure of these contracts
will have an effect on the year end results as referred to in that
announcement. In addition, the Company continues to grow its
contracted recurring revenue base and the Board anticipates
announcing a significant increase in this year on year with the
31 March 2018 results.
The reasons for the placing are hence twofold.
Reasons for the Placing
The Company is becoming more focussed on dealing with large,
complex global organisations. This has led to a need to keep a
proportion of operating cashflow earmarked for deposit purposes
with suppliers. In order to fully take advantage of two specific,
recently won opportunities, and others that are still at the pitch
or negotiation stage, the Board has decided to execute this small
fundraise to meet these requirements.
In addition, the Digital Signage market continues to grow and
with the ongoing improvement in Group performance, the Board
believes that there are strategic growth opportunities that should
be explored and an element of the Placing funds will be set aside
for this purpose.
The Board is aware of the dilutive nature of any fundraising at
the current share price and as such has limited the amount raised
to cover these two requirements only, with a handful of existing
long term shareholders.
Details of the Placing
The Placing Shares will be credited as fully paid and will rank
pari passu in all respects with the existing Ordinary
Shares, including the right to receive all dividends and other
distributions declared on or after the date on which they are
issued.
Application will be made for admission of the Placing Shares to
trading on AIM (“Admission”). It is expected that Admission will be
effective on or around 8.00 am on
19 February 2018.
Director’s participation in the
Placing
Lance O’Neill, the Company’s chairman, has subscribed for
13,334,000 Placing Shares at the Placing Shares. Following
Admission, Mr O’Neill will be interested in 37,977,177 Ordinary
Shares, representing 3.0 per cent. of the Company’s enlarged issued
share capital.
Total voting rights
Following Admission, the Company's total issued share capital
will comprise of 1,286,757,774 Ordinary Shares. The Company
does not hold any Ordinary Shares in treasury. Therefore the total
number of Ordinary Shares with voting rights in the Company will be
1,286,757,774. This figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company
following Admission.
Market soundings, as defined in the
EU Market Abuse Regulation (MAR), were taken in respect of the
Placing with the result that certain persons became aware of inside
information, as permitted by MAR. That inside information is
set out in this announcement and has been disclosed as soon as
possible in accordance with paragraph 7 of article 17 of MAR.
Therefore, those persons that received inside information in a
market sounding are no longer in possession of inside information
relating to the Company and its securities.
This announcement contains inside
information.
Enquiries:
Geoff Robertson
Chief Executive Officer
MediaZest
Plc
0845 207 9378
Edward Hutton / David Hignell
Nominated Adviser
Northland Capital Partners Limited
020 3861 6625
Claire Noyce
Broker
Hybridan LLP
020 3764 2341
Notes to Editors:
About MediaZest
MediaZest is a creative media agency and audio visual systems
integrator that specialises in providing innovative marketing
solutions to leading retailers, brand owners and corporations, but
also works in the public sector in both the NHS and Education
markets. The Group supplies an integrated service from content
creation and system design to installation, technical support and
maintenance. MediaZest was admitted to the London Stock Exchange's
AIM market in February 2005. For more
information, please visit www.mediazest.com