Share Issue Strengthens Advantage Balance Sheet
Advantage Strengthens Balance Sheet With The Issue Of New Shares
Advantage Group Limited November 20, 2001
Advantage Strengthens Balance Sheet with the Issue of New Shares
Advantage today announced to the Stock Exchange that it has agreed to issue new shares for final payments for two of its earlier acquisitions, and it has issued new shares for $1.665m of additional working capital.
"This issue of $3.8m of new shares will strengthen the Advantage balance sheet by converting a liability of $4.1m into equity after obtaining a $300,00 discount from the vendors. In addition we have increased the working capital by $1.665m.," said Evan Christian, Chairman of Advantage.
"Over the past year the Directors of Advantage Group have tidied up its investments and associated goodwill in the Advantage balance sheet, improved the level of working capital, and now have cleared up the deferred settlements. In a year in which technology stocks have been hammered internationally, this has been sound and prudent management," said Mr Christian.
"We are confident that our shareholders will recognise that we now have the company back into a position where we can focus on operational performance and improving shareholder value."
The final payments being made with the issue of shares are for the deferred settlements on Aldridge Punter Ltd and Advantage Portable Technology Ltd. The conditional agreements are for $3.8m to be issued in shares at the volume weighted average price for the five trading days immediately preceding the agreement. These issues of additional shares are for deferred settlements are subject to shareholder approval at this Friday's Annual Meeting. The raising of $1.665m cash for working capital purposes by the issue of shares to third parties at a price of 37cents each is a 7% premium over the volume weighted average price for the month immediately preceding the agreeement.
The Annual Meeting is to be held in Auckland at the Heritage Hotel commencing 11am this Friday.