Offer Received
21 June 2010
Sealegs Corporation(NZX:SLG) has received an offer to subscribe to 31 million new shares from Avenport Investment Corporation. The consideration of the offer is $6.2 million which is based on the 30-day average closing share price as at 15th June.
The Sealegs board has resolved to put the offer to shareholders for approval at the annual general meeting on July 30th . The board based its decision on the fact that the strategic expansion of Sealegs will require significant working capital and because Avenport shared the same vision for Sealegs as the management.
Sealegs CEO David McKee Wright said “Sealegs has proven it has a product that works in over 25 countries around the world, it has proved the amphibious boat market is a significant one with multiple applications and it has proved its business model can be profitable. An investment into international expansion and the creation of a global brand makes good strategic sense at this time.“ He went on to say “Avenport would bring an international focus to the company and the capital from the placement would fund marketing, sales initiatives and the development of new models.
The Sealegs board has commissioned an independent appraisers report on the offer and when completed it will advise its findings and views to shareholders.
Sealegs recently announced a $642,000 operating profit on sales of $11.4m for the year ending March 31st 2010.
