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MediaRing to place out S$24.1m worth of new shares to new investor |
• Venture One Finance will subscribe for 150.33m new shares at $0.16 each
• New funds, together with existing cash, will be used for acquisitions/investments
SINGAPORE – 26 August 2005 – Mainboard-listed MediaRing Limited (“MediaRing” or the “Group”), the leader of pure-play VoIP telephony service providers in Asia, is beefing up its financial resources to allow it expand its business through acquisition and investments in the Asia-Pacific region.
The Company announced today that it has entered into a placement agreement with Venture One Finance Limited which will subscribe for up to an aggregate of 150.33 million new shares, representing approximately 20% of the capital of MediaRing.
At the agreed placement price of $0.1608 per share, the net proceeds from the placement will amount to approximately S$24.14 million (equivalent to about US$15 million).
This, together with its existing cash of US$35 million, will substantially strengthen MediaRing’s financial resources, raising its total “war chest” to more than US$50 million.
Commenting on the latest fund-raising exercise, Mr Khaw Kheng Joo, CEO of MediaRing, says, “We have completed the restructuring and turnaround of MediaRing, as reflected in our most recent financial results. We need now to seriously look at scaling up to become a key player in the VoIP space. And in order to do this, it is important for us to have the financial resources to go after new acquisitions and/or investments in assets or businesses which are synergistic with our business.”
On 12 August 2005, MediaRing reported its second consecutive half year net profit of US$1.2 million driven by strong growth in revenue. Group revenue surged 91% to US$44.4 million from US$23.3 million in 1H 2004, mainly due to continued strong growth in its VoIP retail operations.
Venture One Finance, the subscriber, is owned by NewSmith Capital Partners (Asia) Pte Ltd and Granite Global Ventures II, LP.
New Smith Capital Partners is an independent investment management and corporate advisory partnership with offices in London and Singapore. Wholly owned and financed by its equity partners, the partnership provides asset management services via NewSmith Asset Management LLP which has US$4b of funds under management and corporate finance advice through NewSmith Financial Solutions Ltd.
Granite Global Ventures is an expansion stage venture capital firm focused on information technology and healthcare investments. It was founded in partnership with Venrock Associates to bring differentiated value to entrepreneurs. Granite Global Ventures works with entrepreneurial companies that have completed product development and have established customer relationships but are seeking growth capital to expand their businesses.
“We welcome Venture One as a shareholder and I am sure they will be able to contribute to the further growth and expansion of the Company,” says Mr Khaw.
In order to align the interest of key management of the Company, MediaRing says the subscriber intends to grant an option to key management personnel who may include Executive Directors, to subscribe for less than 10% of the enlarged capital of Venture One Finance.
About MediaRing
With offices in Singapore, Malaysia, Shanghai, Beijing, Hong Kong, Taiwan, Japan and Sunnyvale (USA), MediaRing is the leading VoIP telephony service provider in Asia and enjoys a significant share of the global pure-play VoIP market. Through its strong technological capabilities and extensive distribution network, MediaRing brings high-quality voice services to carriers, enterprises, service providers, and consumers with its wide range of service offerings. Its extensive partnerships with carriers around the world allow call terminations in more than 240 countries worldwide. As a pioneer in VoIP services with unique proprietary technology, MediaRing derives more than 90 per cent of its revenue from outside Singapore.
MediaRing recently announced that it has entered into a placement agreement worth US$24.1m with Venture One Finance Limited. Venture One Finance Limited subscribed up to an aggregate of 150.33million new shares which represented approximately 20% of the capital of MediaRing. Venture One is a company incorporated in the British Virgin Islands.
Public Relations Contact
For further information please contact:
August Consulting
Tel: 6733 8873 Fax: 6733 9913
Silvia HENG- silvia@august.com.sg
Lynn Ll- lynn@august.com.sg
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