Intandem raises cash through share issue
$750,000 to be used to repay loan, fund expansionLONDON -- U.K. sales and finance banner Intandem Films, listed here on the Alternative Investment Market, raised £500,000 ($750,000) via a share issue.
The company offered 12,500,000 new ordinary shares of 0.1 pence at a placing price of £0.04 pence ($0.07), representing a premium of 60% to the closing mid price on March 25.
The company told the stock exchange the cash raised would be used to repay an outstanding loan of £50,000 ($70,000) and fund the working capital requirement of the company as it seeks to expand its operations.
Intandem also said Monday a major shareholder has agreed to convert a £450,000 convertible loan note into 10,000,000 new ordinary shares of 0.1 pence at an effective conversion price of 4.5 pence per share, representing a premium of 80% to the closing mid price on March 25.
The moves mean that since September 2009, Intandem has removed £7 million ($10 million) of liabilities from its balance sheet.
Intandem chief executive Gary Smith said: "I am delighted to have completed the successful restructuring of our balance sheet and we are now focused on improving the profit and loss account. We believe that the Placing at a premium to the current share price represents an endorsement of our strategy and we will continue to work hard to provide a return to all our shareholders."