Fundraising propels Avanti Screenmedia higher

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Date: Friday 18 Jul 2008

LONDON (ShareCast) - Shares in digital screen media specialist Avanti Screenmedia rocketed 2½ times Friday on news that Neo Media has subscribed for £300,000 of convertible loans worth 42.1% of the company on conversion.

The AIM listed firm took off as it confirmed the issue of £400,000 of new convertible loans, carrying an annual interest rate of 10% and due to be repaid or converted at 1p each in 12 months.

Avanti expects to work closely with Swiss digital out of home (DOOH) group Neo “to broaden both its market penetration and product offering through clear synergies of expertise and opportunity”.

Neo provides DOOH solutions to shopping centres, hypermarkets, etailers and exhibition centres in eight European countries, and in Canada. Avanti will give it access to the UK market.

As a result of the deal, Avanti has now scrapped talks to sell certain parts of its business which had been designed to allow bosses to focus on the leisure, retail and creative services businesses.

“The board is confident that Neo provides an excellent strategic fit for Avanti's plans for the future,” said chief executive Simon Rees.

“We see this alignment as the start of further consolidation of the digital out of home sector, both locally and internationally.”

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