Nedlands-based LED pixel signage company Lumacom Ltd aims to raise $1.3 million through a non-renounceable entitlements issue of one share for every two held to fund the business and a review of potential acquisitions.
The full text of a company announcement is pasted below
Further to its announcement on the 15th November 2007 in relation to the non-renounceable entitlements issue to shareholders on the basis of 1 Share for every 2 Shares at a price of 1.1 cents per share, the Company wishes to advise that it will be lodging its prospectus with the Australian Securities and Investments Commission today.
As advised in the Company's regular reports to investors, one of the Company's main objectives during the last 12 months has been to identify potential acquisitions which have synergies with the Company's existing business. The proceeds of the pro rata entitlements issue will fund the existing Lumacom business as well as assist the Company in its review of potential acquisitions.
There is no formal agreement with any current opportunity. However there is one business which may meet the Company's investment criteria although the discussions are still in their early stages. The Company wishes to emphasise there are still significant hurdles to be addressed prior to the transaction proceeding.
Lumacom is considering a combination of two businesses based in China which appear to provide synergetic advantages. The next stage of the process awaits the completion of the independent audit of these Companies and which is expected in the near future. In addition we anticipate licencing and structuring issues will need to be addressed.
Should a satisfactory agreement be finalised, the acquisition will probably entail the issue of securities in Lumacom. Depending on the profitability of the business, the transaction is likely to be of a scale which may entail the vendor holding a substantial interest in the Company. This will be subject to appropriate regulatory approvals.
The rights issue timetable is expected to be as follows however it may change subject to the Company's discretion.
Announcement of the Entitlement Issue 14 November 2007
Prospectus lodged at ASIC and ASX 22 November 2007
Record Date to determine Entitlement to New Shares 5.00pm WST 30th November 2007
Prospectus despatched to Shareholders 3 December 2007
Closing Date 24 December 2007
Allocation of New Shares and Dispatch of holding statements 4 January 2008
Estimated quotation date on ASX of the New Shares 4 January 2008
