Bella Media is selling its IMAX cinema project in California and turning itself into a cash shell.
The project in Monterey, California is running over budget and has suffered problems with its potential electricity supply. This has made it more difficult to sell the naming rights of the cinema.
Two executive directors, Fred Weinert and Steve Crisman, have been supporting the project with personal guarantees and they have offered to buy the subsidiary carrying out the business. They have offered $650,000 and will take on debts of $600,000.
Net debt was £109,000 at the end of 2006. If the sale doesn’t go ahead the company will need to raise cash to complete the project.
A share placing is likely to take place after the disposal. The placing price will be below the current share price of 0.03p. Bella will announce its new direction when it sends out a circular for the meeting to obtain shareholder agreement.
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.