Perth based electronic outdoor media company Lumacom Ltd has raised almost $500,000 in a share placement to raise working capital for the company, which is in the process of acquiring Hong Kong-based outdoor media services group Vertigo China Ltd.
Over 21 million shares were placed at 2.3 cents each to professional investors, raising $488,750, with the shares expected to be alloted around July 17.
The placement represents less than 15 per cent of the shares currently on issue.
Lumacom directors have also applied for the 8 million shares at the same price, which will be discussed at a general meeting to be held in the near future.
The full announcement to the stock exchange is pasted below
The Board of Lumacom Limited advises that the Company has completed the placement of 21,249,996 shares to professional and experienced investors pursuant to s.708 of the Corporations Act 2001. The shares were placed at 2.3 cents per share (the same price as the current Share Purchase Plan) and raised $488,750. It is expected that the shares will be allotted on or about 17th July 2006.
The placement represents less than the 15% of the Company's shares on issue and therefore complies with ASX Listing Rule 7.1.
In addition, the Company has received applications for 8,000,000 shares at 2.3 cents from the Directors of the Company (these are not included in the above total of 21.25m shares). As the Directors are related parties for the purposes of the Corporations Act 2001, the Company will issue shares pursuant to those applications upon approval from shareholders at General Meeting.
The Directors will leave the cash in the Company as interest free loans until the allotment of shares is approved by the shareholders. The CFO and a former director have lodged applications for shares which are not included above. They have elected to have the allotment of their shares approved by the members at General Meeting alongside the Directors and have left those funds in the Company as an interest free loan.
Total funds raised by the placement will be used for working capital for the Company. The Company is in the process of completing its due diligence on the Vertigo business as announced on the 7th June 2006. A General Meeting of members will be required to approve any proposed acquisition. Approval for the allotment of the Directors' and Executives' shares will be sought at that time.
