AMZ Holdings has withdrawn the EGM motion to disapply pre-emption rights in a future fundraising.
AMZ wants to raise to cash to take advantage of new gaming legislation in Taiwan. The plan was to issue more convertible loan stock and change the terms of the existing convertibles to bring them into line. AMZ needed permission to issue ordinary shares following any conversion.
Management says that it is still confident that it can raise the cash it requires to redeem some of the existing convertibles and finance working capital for the business. Two holders of AMZ convertibles want to partially redeem their holdings and obtain £1.6m in cash on 24 October 2009. That would leave £3.4m of convertibles in issue.
AMZ is the largest private landholder on Penghu Island, Taiwan. The 26.6 acres of land was bought from 287 different sellers over eight years. A local referendum will be held on 26 September in order for the population of Penghu to vote on the legalisation of gambling. If there is a positive vote, this will be the first step in establishing a gaming resort on the island.
The vote is the key to AMZ’s future so holding an EGM the day before seems strange.
Shares in AMZ fell 1.5p to 138.5p each, which values the company at £22.3m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.