Sale of Freelance Media to Avanti Screenmedia Group 19/01/2005
41.5% owned by Summit Group
Completion of the acquisition of Freelance Media Limited
Further to the announcement on 23 December 2004, Avanti Screenmedia, the market
leading provider of retail television services to high street retail and the pub
and bar market clients, is pleased to announce it has escrow completed (with
completion occuring automatically on admission of the Consideration Shares to
AIM) the acquisition of the entire issued share capital of Freelance Media
Limited ("Freelance Media") following the conditions of the acquisition having
now been met.
Freelance Media (which trades as "Screen Network"), has been trading since 2000
and provides screenmedia services to shopping centres. It currently has
installed at two shopping centres (Victoria Place in London Victoria Station and
White Rose in Leeds), has a contract to sell advertising on existing screens in
the Trafford Centre Manchester and has signed a further 5 contracts to create
screenmedia networks in shopping centres in London and the North with several
others at late stage negotiation.
It employs a free to air model, signing exclusive agreements with shopping
centre operators and generating revenue through the sale of advertising.
The acquisition, is for a consideration of approximately £1.9 million which will
be satisfied by a cash payment of £541,728 and the issue of 690,441 new ordinary
shares in the Company ("Consideration Shares") at a price of 200p per share.
Freelance Media generated a loss before tax of £498,976 on turnover of £59,225
for the year ended 31 December 2003 and had net liabilities as at 31 December
2003 of £21,546.
Commenting on the acquisition, David Williams, Chief Executive of Avanti
Screenmedia said "Now that we have completed the acquisition we can begin the
job of aggressively acquiring other contracts. Our financial and trading
credibility puts us in a strong position to lead the shopping mall market, as we
do in other areas of Out of Home Digital advertising. As a result of the
acquisition, several prominent property entrepreneurs, will join our share
register and we hope to learn a great deal from them."
Application for admission to trading on AIM for the Consideration Shares has
been made and trading in the Consideration Shares is expected to occur on Monday
24 January 2005. The Consideration Shares will, on Admission, rank pari passu in
all respects with the existing ordinary shares of the Company.
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