By Phil Boeyen, ShareChat Business News Editor
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Thursday 16th May 2002 |
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The issue price for the new shares marks an all time low for the company's stock. Just a few weeks ago they spiked to around 13 cents after bullish comments from Deep Video Imaging chairman, Keith Philips, were published in the Sunday Star Times newspaper.
The report claimed that DVI, which is 43% owned by ITC, was on the brink of a major deal with the US military.
However a few days later ITC told the market that any potential sales to the US military were up to 3 years away.
The company says it is now looking to raise between $3 and $5 million by issuing new ordinary shares at 4 cents. The proposal will be put to shareholders at the annual meeting at the end of June.
"With current cash reserves at less than $500,000, new capital is required to allow the company to move forward over the next 12 months," the company says.
"Market conditions have made the capital raising exercise a difficult one and that the placement price of 4 cents reflects the risk that is attached to investment in IT Capital in its current state."
The company says it also intends to do a rights issue within the next six to nine months, as part of an ongoing capital raising program following the annual general meeting.
After recently selling its share of Virtual Spectator the company is now down to three investments - Hamilton-based Deep Video Imaging, Terabyte and Golden Orb.
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