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Cadmus secures first Institutional Investor

Cadmus secures first Institutional Investor

Payment solutions company, Cadmus Technology Limited (NZSE: CTL), today announced that JBWere New Zealand Private Equity No.1 Fund Limited, has agreed to subscribe for an initial 8.85% shareholding in the Company. There is potential to increase this up to 13.8% shareholding, via a put and call option arrangement.

The Fund has initially agreed to subscribe for a placement of 15,384,615 convertible preference shares in the Company (at 6.5c per share). The Fund has also granted the Company a put option, which if exercised, will require the Fund to subscribe for an additional 10,000,000 ordinary shares at the higher price of 10c per share. The put option is subject to the Company meeting agreed audited EBITDA performance and share price targets for the FY 2003. If the Company is not entitled to, or does not exercise the put option above, the Company has granted the Fund a call option entitling the Fund to subscribe for, and receive, 12,500,000 ordinary shares at 8c per share.

The placement of convertible preference shares will see the Fund become a cornerstone investor in Cadmus’ rapidly growing business and will provide the Company with access to the funding it needs to grow its export business and increase shareholder value. The initial equity placement will be used to improve Cadmus’ balance sheet and provide additional working capital to support its growing international business.

“Cadmus is delighted to welcome JBWere New Zealand Private Equity as a cornerstone shareholder and has agreed to the appointment of an independent director to the board,” said Cadmus Chairman, Keith Phillips.

“We acknowledge the confidence shown in our business and look forward to working with JBWere New Zealand Private Equity to build the international profile of the Company.”

“We have completed a long development phase and with the application of further working capital, are now positioned to take advantage of the considerable market opportunities available to the Company, both in New Zealand and overseas,” says Cadmus Managing Director, Ian Bailey.

“JBWere New Zealand Private Equity is very pleased to support the on-going efforts of Cadmus management and board,” says Paul Chrystall – Head of Private Equity, JBWere New Zealand. “The Fund plans to be a long term investor in companies which it considers provide a platform for sustained growth and value creation. Cadmus is unique in New Zealand in that it develops and produces payment products – operating out of the more mature New Zealand market – and now has the ability to migrate its technology to other countries as a logical next step.

“Cadmus has already gained considerable success in the domestic and international markets and is a sound export based business with high growth potential in the Asia Pacific region.”

The placement of convertible preference shares and the grant of the options is conditional on approval by the shareholders of the Company.

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