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Digislide to realise full potential with huge capital injection

  • 13 November, 2009 13:32

<p>Digislide Holdings Limited (ASX:DGI) has successfully tapped into international money markets and secured $18 million in capital investment commitments from London based investment company, GEM Global Yield Fund Limited.</p>
<p>Subject to shareholder approval, the equity placement represents more than six times the value of Digislide’s initial public offering and will help accelerate the domestic and international potential of their miniaturised projection technologies.</p>
<p>Digislide CEO, Luceille Outhred said the ground breaking deal is an absolute coup and a strong validation of their technology, company structure and justification for the early investors of Digislide.</p>
<p>“The investment from GEM puts us in a much stronger position to negotiate with global brands and ensures our product innovation meets the demands of a rapidly changing market place.</p>
<p>“We’ve always positioned Digislide as a global company and this investment will enable a rapid response if current negotiations in the Silicon Valley, Asia and Europe come to fruition.” Luceille said.</p>
<p>Under the terms of the GEM EQUITY LINE FACILITY AGREEMENT (EF) GEM has agreed to provide $18.0 million in investment funding over three years – and Digislide can decide how much they draw, and the timing of the draw downs.</p>
<p>“Initial funds from the listing were tightly committed which could restrict growth potential but the (EF) will remove those limitations,” Luceille said that clinched the deal.</p>
<p>Alvin Donovan, Executive Director of THE FMS GROUP, who managed and facilitated the Digislide/GEM EF said ”We respected the fact that Digislide were committed and brave enough to list when most companies retreated. We see
enormous global potential and this capital positions them perfectly to take a strong lead in the international commercialisation of miniature projection.”</p>
<p>Upon execution, Digislide will issue to GEM 11 million options with 5 million exercisable at a price of 0.50c and 6 million exercisable at a price of $1.00. These options are well in advance of DGI’s current share price of 37 cents.</p>
<p>About Digislide:</p>
<p>Digislide is an Australian based company that develops globally relevant innovative miniaturised projection technologies with broad applications.</p>
<p>The tactical focus is on targeting products/applications that can be embedded into a range of mobile and/or hand held communication devices, such as mobile phones, PDA’s and notebook computers. The technologies have wide patent protection and have already received international acclaim; winning several awards in important international technology arenas.</p>
<p>About GEM:</p>
<p>The GEM Group (Global Emerging Markets), comprising GEM Investment Advisors, Inc. and Global Emerging Markets Global Yield Fund Limited and their affiliates, was founded in 1991. See www.gemny.com It is a US$ 3.4 billion alternative investment firm engaged in the management of a diverse set of investment tools cantered on emerging markets all over the world. It is a UK-based fund management group with offices in London, New York, Paris and Hong Kong. The scope of GEM Group’s activities and investment is both US domestic and international, across a broad spectrum of industries and transactional structures. The Group has completed more than 230 transactions representing investment in over 200 companies in 45 countries across the world.</p>
<p>GEM manages a diverse set of investments vehicles across the world. All of these are expected to deliver globally competitive solutions, above average growth metrics, supported by compelling industry fundamentals driven by committed shareholder return aligned executives and Boards.</p>
<p>The Digislide/GEM EF was managed and facilitated by The FMS Group (“FMS”). FMS has a strong track record in Australasia in providing innovative, focussed and committed capital and advice to companies with global markets, superior growth metrics, supported by quality management.</p>
<p>For further information contact</p>
<p>Media Contact
Corrie McLeod
Espresso Communications
M: 0419 526 848
Email: corrie@espressocomms.com.au
www.espressocomms.com.au</p>
<p>GEM/THE FMS GROUP:
Alvin Donovan
Executive Director
M 0415810958
Email: Donovan@Fmspte.com
www.thefmsgroup.com</p>

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