Durrant Pate/Contributor

There is still no word on the actual share price for the upcoming J$425-million Rights Issue of Jamaica-based creative company, iCreate Limited.

With exactly two weeks to go, no announcement has been made about the cost per share in the Rights Issue, which is an offering to existing shareholders the opportunity to subscribe for additional ordinary shares in the company at a agreed price.

The proceeds from the Rights Issue are solely to complete the acquisition of Visual Vibes.Com Limited, one of the leading video board advertising companies in the country.

TARGET INCREASED TO $425 MILLION

Shareholders, as at September 26, are eligible to participate in the equity raise. When the Rights Issue was initially mooted last year, it had a target of J$55 million but this was increased to J$425 million and approved by shareholders at the company’s extraordinary general meeting last month.

The share price in the Rights Issue is being pegged to the convertible debt financing of J$100 million and US$400,000 to be provided by Astronomical Holdings Limited and Kintyre Holdings Limited, respectively. The loans will be converted to ordinary shares at a conversion price and will be the same as the subscription price fixed for the ordinary shares proposed to be made available for subscription according to the Rights Issue.

New ordinary shares of up to $212.5 million ordinary shares with the option to upsize and a similar allotment of J$212.5 million worth of shares will be made available as per the debt financing conversion to equity holding deal with Astronomical Holdings and Kintyre Holdings.