Archos announced on Friday the success of its capital increase with preferential subscription rights, launched last April 21 and whose subscription period ended on May 4.
This capital increase will allow Archos optimize its financial structure by performing the prepayment of the loan of five million euros, made by Echostar, December 23, 2008, the annual interest rate of 20%.
The merger would also allow it to "have more financial resources to capture the growth of a market with huge potential and develop new distribution channels (white label, B to B, new country)," the manufacturer of mobile digital devices.
In exchange, the news is welcomed, since the title Archos rose 1.7% to 9.4 euros on the Paris market in the red, around 10am.
In detail, the transaction was heavily oversubscribed with a total demand of 11,608,093 shares, representing a subscription rate of 285.2%.
Given this demand and to increase the rate of service requests for application for excess shares, the CEO of Archos has decided to exercise in full extension clause.
In the end, 3,872,578 shares have been subscribed on an irreducible, or 82.7% of new shares. The subscription applications under excess will be met up to 807,540 shares.
The aggregate gross amount of the capital increase (premium included) thus amounts to approximately 30.42 million euros, by issuing 4,680,118 new shares, bringing the total number of shares outstanding Archos to 25,028,462.
The settlement of the new shares will take place May 17, 2011 and admission to trading on Euronext Paris will take place May 18, 2011. The new shares will be treated as current and existing shares and traded on the same listing (ISIN: FR0000182479).
This capital increase will allow Archos optimize its financial structure by performing the prepayment of the loan of five million euros, made by Echostar, December 23, 2008, the annual interest rate of 20%.
The merger would also allow it to "have more financial resources to capture the growth of a market with huge potential and develop new distribution channels (white label, B to B, new country)," the manufacturer of mobile digital devices.
In exchange, the news is welcomed, since the title Archos rose 1.7% to 9.4 euros on the Paris market in the red, around 10am.
In detail, the transaction was heavily oversubscribed with a total demand of 11,608,093 shares, representing a subscription rate of 285.2%.
Given this demand and to increase the rate of service requests for application for excess shares, the CEO of Archos has decided to exercise in full extension clause.
In the end, 3,872,578 shares have been subscribed on an irreducible, or 82.7% of new shares. The subscription applications under excess will be met up to 807,540 shares.
The aggregate gross amount of the capital increase (premium included) thus amounts to approximately 30.42 million euros, by issuing 4,680,118 new shares, bringing the total number of shares outstanding Archos to 25,028,462.
The settlement of the new shares will take place May 17, 2011 and admission to trading on Euronext Paris will take place May 18, 2011. The new shares will be treated as current and existing shares and traded on the same listing (ISIN: FR0000182479).