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Handmade
- BY: Andrew Hore |
- POSTED: 28/09/2008 |
Handmade has renegotiated the deal to buy the eponymous film library.
The original agreement with Cartier Investments Inc, the seller of the business, in May 2006 was for the quoted company to pay £14.75m for the film library. That included deferred payments of £7.75m. The original £7m payment included £2m of convertible loan stock.
Cartier is owned by a family trust of Handmade chairman Patrick Meehan.
Handmade is repaying £100,00 of the £2m loan stock. The repayment date of the rest of the convertible loan stock has been extended to July 2009. The annual interest charge is being increased from 6% to 10%. The conversion share price has been changed from 25p to the average market price five days before the payment date - subject to a minimum of 5p.
The shares were suspended at 20.25p on 27 June, valuing Handmade at £23.5m.
The £3m cash part of the deferred consideration is now payable at the end of July 2009. There is a annual interest charge of 10%.
The other £4.75m of the deferred payment will be satisfied by the issue of shares at the suspension price. Cartier will own 53.25% of Handmade.
A placing at 18p a share raised £540,000 gross for the company.
There is no indication when the 2007 accounts will be published so the shares remain suspended.
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