Late on Friday, following the suspension of trading in its shares and the announcement of its financial results, Future Network revealed the details of its refinancing plan (see Future Shares Remain Suspended As Losses Are Revealed). The group is to issue new shares at 20p each in order to raise £33 million net of expenses.
Six new shares will be issued for every five existing Future shares and the money raised from this issue will be used principally to reduce Future Network’s debt burden, currently standing at £70 million.
At the same time the company has appointed Roger Parry as its new chairman; previous chairman, Chris Anderson, has stepped down to become non-executive director. Commenting on the moves, Parry said: “Having considered a number of alternatives, we have concluded that shareholders’ interests are best served by a rights issue, which enables them to participate in the future of the business. The proceeds will be used to repay Group debt and to establish a more appropriate capital structure”.
