Capital raising announced to shore up the balance sheet against effects of cinema closures.
Vista Group seeks $NZ65 million to improve balance sheet
Tom Richardso
Cinema software group Vista Group is to raise $NZ65 million via a $NZ25 million placement to institutional investors and $NZ40 million entitlement offer available to retail investors.
The offer is on a 1 for 4.37 non-renounceable basis at $NZ1.05 a share and FX-adjusted Australian equivalent to support the cinemas business through the COVID-19 pandemic.
The application price is at at 25 per cent discount to the last closing price, with staff and directors subscribing for $NZ4.7 million in new shares in total.
Chairman, Kirk Senior said “The outbreak of COVID-19 and the actions taken by governments in response, are having, and will continue to have, a substantial impact on Vista Group and the global film industry more generally.
“The equity raising combined with the already announced measures to reduce operating costs, defer certain capital expenditure projects and cancelling the FY19 final dividend provide a comprehensive plan to strengthen and provide liquidity to the business in order to remain well capitalised.”
Be the first to comment