VideoLogic Group PLC Places 6.9 million Shares
VideoLogic has today announced that it proposes to raise approximately £4.8 million, net of expenses, by the issue of 6,938,920 VideoLogic new Ordinary Shares of 10p each ("new Ordinary Shares") at 70p per share in a placing by SBC Warburg (the "Placing"). The new Ordinary Shares will be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares.
The Placing is conditional on the admission of the new Ordinary Shares to the Official List, for which application has been made.Background to and reasons for the Placing
At the time of the interim announcement in December 1995 it was stated that the growth in demand for the GrafixStar product range together with the promising opportunities for PowerVR might result in the need for some additional equity funding.
On 26 February 1996, NEC Electronics launched a family of novel high performance 3D processors based on VideoLogic and NEC PowerVR technology. The first application of the technology, which overcomes the performance and memory bandwidth limitations of current 3D implementations, will be in PCs and arcade machines. Chips for the console game machine market are already in advanced development.
Deliveries of the arcade chip set have commenced in sample form with volume availability in the third quarter of 1996. The single chip PC version will be available in the second quarter with volume availability in the Autumn. An increasing number of hardware manufacturers and content developers, including NAMCO and Diamond Multimedia Systems, have announced publicly their support for games and products based on the PowerVR architecture. In addition, VideoLogic is actively working with a number of major companies whose products are expected to incorporate PowerVR technology, but the existence of these products must remain confidential until their respective launch dates.
The cashflow from the royalty revenues earned from NEC sales of the PowerVR chip is not expected to commence until later in the year. It is therefore considered an appropriate time to a raise prudent amount of additional capital to fund the operations of the Group, as well as VideoLogic's continuing contribution to development expenditure on the joint PowerVR and Highlander projects.
While it is too early to give a detailed estimate of results for the second half year we are pleased to report that a combination of lower costs and improved chip availability has enabled the trading position to show a marked improvement in the current quarter.
For further information please contact:
Tel: 01923 260511
Tel: 0171 606 1066
The contents of this release for which VideoLogic Group PLC is responsible, have been approved for the purposes of Section 57 of the Financial Services Act 1986 by Swiss Bank Corporation which is regulated in the United Kingdom by The Securities and Futures Authority Limited.
PowerVR is a trademark of VideoLogic.