RGM Media raises $2.2m, ASX questions negative operating cash flows

03 August, 2011 by Brendan Swift

RGM Media has raised $2.2 million through a convertible bond issue after the Australian Securities Exchange questioned whether it has sufficient cash to fund its future activities.

In the last quarter, the fledgling production company posted net negative operating cash flows of $1.14 million while retaining just $246,863 in cash.

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However, RGM executive director Tim Morrison told the ASX that operating cash flows for the June quarter were unusually high relative to customer receipts. The company also has a finance facility available and is in the final stages of establishing an $8 million funding facility.

“The company has, as seen in the Appendix 4C, continued to invest in intellectual property and working capital to strengthen its competitive position in the market,” Morrison wrote in the letter.

“With the funding facility to be announced, and other announcements in progress, the company is confident of a strengthening financial position appropriate for a small, but growing, listed company.”

The company today announced that it had issued $2.2 million in secured convertible bonds to Sculptor Finance (MD) Ireland Ltd, Sculptor Finance (AS) Ireland Ltd and Sculptor Finance (SI) Ireland Ltd.

Last month, RGM announced that aviation tycoon Tony Fernandes would host the Asian edition of hit television series The Apprentice, which it is producing.

RGM has previously said it plans to begin production on four feature films and four TV programs by the end of 2011, which will help lift its annual revenue by up to 10 per cent.

It has spent several years developing a sequel to 1991 hit Point Break – an investment it valued at more than $1.7 million, according to its half-year financial report.

 

 

 

 

 

 

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