EGI 0.00% $1.11 ellerston global investments limited

is this a ~30% return or not

  1. Yak
    13,672 Posts.
    Previously posted under wrong ticker

    I havent seen this before

    Anyone care to comment???

    eGlobal International Limited (.eGlobal.)

    eGLOBAL ANNOUNCES $5 MILLION CAPITAL RAISING

    th
    Australian technology company eGlobal International Limited has today (Monday, 18 August

    2003) announced a proposed A$5 million capital raising program to fund acquisitions and future

    growth opportunitiesin the domestic and internationalsecurity and smartcard market.

    eGlobal is in discussions with ABN AMRO Morgans Corporate Ltd with regard to them

    underwriting the whole program, although the program is not dependent on securing any

    underwriting commitment.

    eGlobal is also proposing to use A$1,000,000 of the amount raised to fund a planned capital

    return of 3.3 cents per ordinary share to shareholders. Completion of this capital return will

    resultin the automatic conversion of the 36.8 million unquoted A class shares held by eGlobal's
    parent, eGlobal International Holdings Limited (EGH), into ordinaryshares and subsequent

    application for quotation of those shares.

    Thiscapital return issubject toshareholder approval to be sought at a general meeting to be
    th
    held on 17 September 2003 and the record date to participate in this return will be set after this

    approvalis obtained. The notice of meeting and accompanying explanatory materials have also

    been lodged with ASX today.

    The proposed capital raising program comprises a non-renounceable rights issue to ordinary
    shareholders of approximately 30 million ordinary shares on a one-for-one basis and a public

    offer of 37 million new eGlobal ordinary shares. It is proposed that all shares will be offered at

    7.5 cents per share, representing a 21 per cent discount to the average ASX trading price for
    th
    eGlobal of 9.5 cents per share for the 5 trading days ending on 15 August 2003, ignoring any
    price impact of the proposed capital return. A prospectus isin preparation and will be lodged

    shortly.

    eGlobal chairman Jim Goldburg said the capital raised will be used to fund the proposed capital
    return and the cashcomponent of the acquisition of the intellectual property assets of Imbros

    Corporation Inc (Imbros) if it proceeds, with the balance (after issue costs) used as working

    capital to enable eGlobal to capitalise on future market opportunities.

    .eGlobal has a clear vision and strategy to broaden its technology and product ranges and

    expand its business presence in the important technology markets of Asia and North America,.

    he said.

    As announced previously, the general meeting called for 17 September 2003 will also consider

    approval of eGlobal's proposed acquisition from EGH of eGlobal's associate, eGlobal

    International (Hong Kong) Limited (EGHK). The explanatory materials for thismeeting include a

    report from an independent expert, PKF Corporate Advisory Services (WA)Pty Ltd, as to the
    fairness and reasonableness to the non-associated shareholders of the acquisition terms as

    required by ASX Listing Rules 10.1 and 10.11. Shareholder approvalisthe last remaining

    condition tothis acquisition to be satisfied.

    .eGlobal.s evolution into a global technology group will be assisted by the strategic acquisition

    of EGHK, which will position eGlobal as a leadingplayer in China.s smart cardsolutions

    market., Mr Goldburg added.

    .The working capital from the rights issue will enable us to service the opportunitiesin China

    following the EGHK acquisition, while also maintaining our ability to identify and act on future

    growth opportunitiesin other markets..

    eGlobal managing director Gordon Chalmerssaidthe acquisition of EGHK will provide eGlobal

    with access to signed contracts and proven management in China, the world.s fastest-growing

    economy.



    ------------------------------------------------------------- page 2


    eGlobal.s future Chinese contracts encompass not only the continued utilisation of eGlobal.s
    smart-card technology, but also the use of cutting-edge biometric technology.
    The acquisition of EGHK means all revenues generated from both current and future Chinese
    projects willnow be reported back to eGlobal in Australia. EGHK is expected to generate
    approximatelyA$9 million in revenue for eGlobal in the current financial year.

    Mr Chalmers said the proposed capital raising isa key component of eGlobal.s planned
    evolution into a worldwide technology group with a strong presence and proprietaryintellectual
    property in the high-growth markets of China and North America.
    He said the acquisition of EGHK, in conjunction with eGlobal.s earlier merger with Citadel
    Securix, provides the expanded eGlobal group with annuity type income streams and a wider
    geographical spread of offices.
    .The working capital injected from the capital raising will enable us to drive the expanded
    business forward to commercialise the many international opportunitiesfor our smart card
    technologies,. he said.
    The public offer will be subject to shareholder approval for the capital return and implementation
    as well asshareholder approval under ASX Listing Rule 7.1. None of the new ordinary shares
    to be issued (under either the public offer or the rights issue) will participate in the planned
    capital return (but will otherwise rank equally with ordinary shares) as they will not beallotted
    until after the record date for participation in the planned capital return.
    Shareholder consideration of eGlobal's proposed acquisition of the intellectual property assets
    of Imbros has, as announced earlier, been deferred until the annual general meeting to be held
    later in 2003. However the consideration payable by eGlobal with respect to this acquisition has
    been revised down as part of the ongoing contract negotiations so that it is now to be
    A$1,000,000 in cash (as previously) but only 20 million ordinary eGlobal shares plus an
    additional 15 million ordinary eGlobal shares if clear title to certain of the Imbros assetscan be
    satisfactorily established.

    ABOUT eGLOBAL
    eGlobal International (ASX:EGI), headquartered in Brisbane, with offices in Sydney, Canberra
    and Melbourne, is an Asia Pacific based integrator of Enterprise Business Applications, Smart-
    card and Security Technologies covering Managed Security Services, Security Consulting (with
    an emphasis on eBusiness), Security Products and IP Interception (for Law Enforcement
    Agencies) for the Government, Telecommunications, Automotive, Mining, Health and Financial
    industries in Australia. Visit http://www.eglobal.netand http://www.citadel.com.au for further
    information. All trademarksmentioned in this release remain the property of their owners.
    Released: 18 August 2003
    Further Information: Gordon Chalmers
    Managing Director
    eGlobal International Limited
    (07) 3369 6899
 
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