Company also seeks to convert, extend 6% loan notes due October 2011
By Devika Patel
Knoxville, Tenn., Aug. 10 - ZOO Digital Group plc said it will take in £1.7 million in a private placement of shares.
The company will sell 4,252,500 ordinary shares at 40p per share, which is a 1.27% premium to the Aug. 9 closing share price of 39.5p.
Proceeds will accelerate the roll-out of the company's software in new markets, particularly eBooks. The directors believe that the company's software is well-suited for producing media-rich eBooks, including picture books, comics, graphic novels, cookery books, travel guides and encyclopedias.
The company also said it is seeking approval from its loan noteholders to convert and restructure all £3.54 million of the notes, which are due to mature on Oct. 31, 2011. The company seeks to convert £1.77 million of the notes into 4,426,250 ordinary shares and extend the term of the £1.77 million balance of the notes to Oct. 31, 2013, which it believes will strengthen its balance sheet. The 6% notes have a conversion price of 48.75p, which is a 23.42% premium to the Aug. 9 closing price.
ZOO is a Sheffield, England-based software solutions company.
| Issuer: | ZOO Digital Group plc
|
| Issue: | Ordinary shares
|
| Amount: | £1,701,000
|
| Shares: | 4,252,500
|
| Price: | 40p
|
| Warrants: | No
|
| Pricing date: | Aug. 10
|
| Stock symbol: | London: ZOO
|
| Stock price: | 40.12p at close Aug. 10
|
| Market capitalization: | £9.34 million
|
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