IM shareholders reject capital increase
EmptyCOLOGNE, Germany -- The shareholders of Intermedia's German parent company, IM Internationalmedia, have rejected a capital increase proposed by management aimed at rescuing the troubled film company.
IM will now have to look elsewhere for the cash it needs to keep operating.
The company has issued a warrant bond to provide the needed capital. But of the bond's 3 million euros ($4.4 million) value, only 140,000 euros ($212,000) has so far been successfully placed. Following the shareholder's vote, IM will have to look to outside investors to place the remainder.
IM shares had dropped 6.7% by midday Tuesday to 0.08 euros ($0.12).
IM shares have been in a tailspin since early this year. Financing problems forced IM to halt production on its biggest film of this year, the actioner "Stopping Power." In the first nine months of the year, IM booked a net loss of 12.8 million euros ($18.8 million), a figure almost exactly equal to the company's total sales for the same period.