The Local Radio Company continues a period of change with the placing of 15.8 million new ordinary shares of 4 pence each, at a price of 19 pence per share raising three million pounds. The board has also appointed two non-executive, non-radio directors on condition the New Shares are admitted to trading.
The extra investment in the company comes from Hallwood Investments, which Anthony Gumbiner is the Chairman, Chief Executive Officer and majority shareholder. Anthony will take his new place at the TLRC board along side Rhys Davies who is Managing Director of Glendower Capital Limited, a London-based investment manager and adviser.
Graham Parrott, Chairman, said: "TLRC is pleased to welcome Hallwood Investments as a major new shareholder and to have achieved this fundraising. Anthony Gumbiner brings a wide range of business experience to the Board and Rhys Davies has had valuable experience in the media field in both the UK and Continental Europe. We believe that they will enhance the Board's current efforts to improve profitability and maximise the value of the Company's assets."
At 30 September 2006 the Company had indebtedness of £440,000. The new funds raised will be used to repay current indebtedness and provide the necessary cash reserves to enable the Board of TLRC to pursue its plans to maximise shareholder value. Current trading continues to absorb cash and this will remain the case until the full impact of recent cost reductions and management changes in certain stations flows through, currently expected by mid-2007.
The New Shares will be issued credited as fully paid and will rank equally in all respects with the Company’s existing ordinary shares of 4 pence each, including the right to receive all future dividends and other distributions declared after the date of issue.