Thursday 16th April 2020
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Vista Group International Limited (Vista Group) has announced its intention to raise approximately NZ$65 million via a NZ$25 million underwritten placement (Placement) to institutional investors, together with an approximately NZ$40 million 1 for 4.37 pro-rata non-renounceable accelerated entitlement offer (Entitlement Offer) (together the Offer). Founders, directors and senior management have committed to subscribe for $4.7 million of the New Shares to be issued, with the balance of the equity raise fully underwritten by Macquarie Capital (New Zealand) Limited (acting through and in conjunction with its affiliates) and Craigs Investment Partners Limited.
Chairman, Kirk Senior said “The outbreak of COVID-19 and the actions taken by governments in response, are having, and will continue to have, a substantial impact on Vista Group and the global film industry more generally. Almost all of our customers are significantly impacted by the restriction of movement and the duration of cinema closures is unpredictable. The equity raising combined with the already announced measures to reduce operating costs, defer certain capital expenditure projects and cancelling the FY19 final dividend provide a comprehensive plan to strengthen and provide liquidity to the business in order to remain well capitalised during this difficult time and, importantly, position Vista Group for growth post COVID-19.”
- Vista Group is undertaking a NZ$65 million equity raising at an offer price of NZ$1.05 per share via a NZ$25 million underwritten Placement, together with an approximately $40 million 1 for 4.37 Entitlement Offer to support the business through the significant disruption caused by the COVID-19 pandemic. NZ$35.3 million of the Entitlement Offer is underwritten, with the balance having been committed to by founders, directors and executive management.
- Vista Group entered the COVID-19 pandemic with a strong underlying business as a global leader in software and data solutions for the film industry.
- The impact of COVID-19 on the film industry globally has been substantial and is expected to be material on the operational and financial performance of Vista Group. Vista Group is actively engaged with its customers to help support them through this difficult time. While Vista Group expects to continue booking recurring revenue, it is working with its customers to manage their payment schedules.
- Vista Group has announced a number of proactive initiatives to increase its financial flexibility, having acted quickly to reduce costs and capital expenditure.
- The Board believes it prudent to also pursue an equity raising to improve balance sheet flexibility and ensure it remains well capitalised during this period and is well placed to trade and take advantage of opportunities post COVID-19.
- Post the equity raising, Vista Group expects to have liquidity of approximately NZ$125 million, comprising cash and existing undrawn facilities (NZ$18 million of which is specifically available to fund the SaaS development project). In addition, Vista Group has engaged with, and continues to be well supported by its debt provider.
- Notwithstanding this temporary period of uncertain economic outlook, Vista Group is well positioned for recovery when cinemas begin to re-open, being the largest provider of business-critical software and data analytics solutions to the global film industry.
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