News blog

Deal Group Media

  • BY: Andrew Hore |
  • POSTED: 26/05/2009 |

Deal Group Media is raising £500,000 via a convertible loan note issued to a company controlled by its former chairman John Porter.

The online advertising services provider wants to improve its balance sheet. DGM lost £2.8m in 2008 after a 56% increase in revenues to £14.7m. There was a small operating cash outflow in 2008 and cash in the bank of £528,000 at the end of the year. There was also a lease commitments provision of £608,000 for its former London offices. However, the main reason for the low cash outflow was a sharp increase in creditors.

The loan note will be convertible into shares at 0.5p each which will giver Porter up to 29.99% of DGM. The loan note has an interest rate of 15% a year and is repayable on one month’s notice. It is secured on DGM’s stake in its former UK subsidiary and its stake in DC Storm.

Management believes that all of the company’s operations will be profitable this year. That does not necessarily meant that they will make enough to cover central costs.

Chief executive Adrian Moss has also taken on the responsibility of the finance director.

The shares rose 0.025p to 0.55p each, which values DGM at £2.51m. 

© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds