WorldAudio will fast-track its Australia-wide rollout of radio stations following a $7 million capital raising.
WorldAudio Limited has announced that it successfully raised $7 million via a placement to institutional, sophisticated and private investors of equity and convertible notes. Funds raised will “enable the company to deploy the infrastructure for its national commercial AM radio network, Radio 2, with the bulk of the funds being used to establish the network including a new operations centre in Sydney to service the new markets,” according to an announcement to the market.
The new shares are to be issued at 10 cents and the notes convert to ordinary shares no later than 1 June 2005 at 12 cents per share. The issue is subject to shareholder approval. The notice of meeting, explanatory statement and independent experts report are being finalised and will be sent to shareholders within the next two weeks.
Chief Executive Officer Andrew Thompson said: “This is a very significant moment for the company and marks the second stage of our expansion program.”
“Interest in the capital raising was strong and applications were received in excess of $7 million. This is a significant feat in the current investment climate and demonstrates the market’s confidence in our long-term strategy.”
“Following the success of our Sydney station, WorldAudio is now positioned to become a national commercial radio broadcaster with licenses located in every major capital city and many regional centres. The Radio 2 National AM network will reach a potential audience population of 12 million people once fully deployed.”
WorldAudio plans to start broadcasting in Melbourne after June, followed by Brisbane and other capital city markets. With the rollout, the company will establish a sales force in the new markets “with a consequential increase in advertising revenue expected.”
Since Radio 2 began broadcasting in Sydney and now “plans to challenge traditional AM stations’ dominance in other capital cities and major urban centres.” The company listed on the Stock Exchange on 21 June 2002 at 20 cents per share.
The company “is also committed to introducing digital broadcast radio, the next quantum leap in broadcast technology and will use a portion of funds raised to secure a leading role in the emergence of this technology.”