Business
JM | Aug 4, 2022

iCreate seeking shareholders’ approval of J$425-million capital raise

/ Our Today

administrator

EGM set for August 25 to vote capital raise proposals

Seated from left: Natalie McNab, co-founder and chief operating officer of Visual Vibes Limited; Visual Vibes’ co-founder and CEO, Ali McNab; iCreate CEO Tyrone Wilson; Arlene Martin, iCreate chairperson; (while standing, from left) Justine Collins attorney at firm Hart, Muirhead, Fatta; Kimberly HoSue, partner at law firm Patterson, Mair, Hamilton; and Dwight Jackson, assistant vice-president of capital markets at VM Wealth. (Photo: Contributed)

Durrant Pate/Contributor

Jamaica-based creative company, iCreate Limited is seeking to raise some J$425 million in capital to continue its expansion programme, in particular the acquisition of Visual Vibes.Com Limited, one of the leading video board advertising companies in the country.

The company is convening an hybrid extraordinary general meeting, scheduled to be held on Thursday, August 25, 2022 at 2:00pm at the AC Hotel by the Marriott, 38- 42 Lady Musgrave Road, Kingston 5 to vote on its proposed rights issue and approval of convertible debt financing. Shareholders will vote on resolutions to effect the rights issue and the conversion of debt financing.

The Tyrone Wilson-led company requires additional capital/funding in order to continue its growth strategy by pursuing several mergers and acquisitions. On May 19, the board of directors of the company passed a resolution, subject to the approval of the shareholders, authorising raising J$425 million by way of a Rights Issue, offering to the existing shareholders the opportunity to subscribe for additional ordinary shares in the company.

Proceeds of Rights Issue

The proceeds of rights issue will be relied on to complete the acquisition of Visual Vibe, which is managed by former Jamaica footballer and sports broadcaster, Allie McNab and his wife, Natalie. On July 18, iCreate’s board of directors passed a resolution, subject to the approval of the shareholders, authorising the acceptance of convertible debt financing of J$100 million and US$400,000 to be provided by Astronomical Holdings Limited and Kintyre Holdings Limited, respectively.

Tyrone Wilson, founder, president & CEO of iCreate Limited. (Photo: Contributed)

The loans will be converted to ordinary shares at a conversion price as will be the same as the subscription price fixed for the ordinary shares proposed to be made available for subscription pursuant to the Rights Issue. The directors and the company secretary wish to be authorised to execute all steps and documents in order to implement and effectuate the Rights Issue and the allotment of the shares not taken up by shareholders.

Shareholders are being asked to vote on a resolution to authorise the subscription of new ordinary of up to 212.5 million ordinary shares (with the option to upsize at such greater amount as the directors in their absolute discretion may approve).

The same allotment of 212.5 million shares will be made available as per the debt financing conversion to equity holding.

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