Force extension allowed - on condition

By Phil Boeyen, ShareChat Business News Editor

Friday 1st February 2002

Troubled cinema operator Force Corp (NZSE: FOR) has extended it rights issue for a further week and at the same is offering those who have already subscribed a chance to withdraw their money.

Applications for the company's $31 million Mandatory Convertible Notes rights issue were originally due to close on January 18, but this was later changed to Friday, February 1, 2002. This has now been further extended to Friday, February 8.

Although the Market Surveillance Panel agreed to the extension, a condition is that Force offers any investors who have already subscribed to the issue the chance to withdraw their applications and receive a full refund of any money already paid.

"The company will be writing individually to all persons who have already subscribed for MCNs informing them of how they can withdraw their applications, and expects that these letters will be received by the applicants by no later than Monday 4th February 2002," Force says.

Force announced the rights issue last October and plans to use the cash to settle ownership of the its problematic Entertainment Centre in Auckland, reduce the debt of Village Cinemas in Argentina and repay some funding to its majority shareholder, casino company Sky City (NZSE: SKC).

Two weeks ago the company said it was in discussions with issue underwriter SkyCity Investments and other concerning the terms of the proposed funding facility for the business in Argentina and the satisfaction of the conditions in the underwriting agreement.

Force said at the time that a market announcement will be made when the discussions have been concluded.

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