Imagi to raise funds with share sale

One for four rights issue will bring in $13.9 million

Imagi International, the Hong Kong- and Los Angeles-based animation group responsible for 2007's "TMNT," will raise HK$108 million ($13.9 million) of fresh capital through a share issue.

The company, which saw its accounts qualified by auditors in December and recently lost CEO Douglas Glen, will bring in the new cash through a one-for-four rights issue at a 26% discount on the recent open market share price.

"The net proceeds of the rights issue will be used to strengthen Imagi's financial position, help complete the production of 'Astro Boy' and finance the ongoing operation of the company," Imagi said in a regulatory filing.

The company said that it also has improved its financial position in two other ways: by repaying $16.3 million of bridge loans through further new share issues and by refreshing a convertible note debt program.

" 'Astro Boy' is on schedule to be released in North America and internationally on Oct. 23," acting CEO William Courtauld said.