Digital media company Netb2b2 is running short of money and its chairman is investing an extra £500,000.
Keith Young is paying the current market price of 10p a share which is the low for the past three years. He is investing £250,000 immediately after an EGM on 21 December and will invest the rest by 20 February 2008. An EGM is required because the other shareholders have to agree to the proposal. If they do the Takeover Panel will waive the requirement for a bid because the full subscription will take Young‘s shareholding to at least 57.6%.
Poor trading and a problem contract have left Netb2b2 short of money and it requires this cash to keep going. The sale of non-core activities is taking a long time. The investment in the Hewlett Packard Netpen business is being written off, as is the One Stop Racing website.
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