[mul] multiemedia options at big discount

http://www.theage.com.au/articles/2004/07/12/1089484302770.html

One of the most heavily traded companies on the Australian Stock Exchange, Multiemedia, has issued 45 million options to unknown recipients at a massive discount to the going price for stock in the internet technology company.

Multiemedia last week announced that it had issued the parcel of options at an exercise price of 1¢ - well below the present 4.6¢ market value of the stock and markedly lower than last October's 12.5¢ high - as the company raises capital through a series of new issues.

It is not known who received the parcel of options. When news of the options hit the market last week, Multiemedia's share price slipped from 5.2¢ to end the week at $4.5¢. Yesterday, the stock recovered one-tenth of a cent to finish at 4.6¢.

Shareholders were not asked to approve the options issue, but a further tranche of 30 million, exercisable at 5¢, will be considered at a shareholder meeting.

Multiemedia has 1.14 billion shares on issue. The options can be converted into ordinary shares and, when exercised, effectively diminish the value of the shares already on the market.

The company is pushing to raise $3.5 million to fund the expansion of its international activities, in particular its Remote Subscriber Satellite Link.

In the details of an interview released to the ASX yesterday, chief executive Adrian Ballintine said that raising funds through a private placement was a "very expeditious way" to capitalise on an opportunity.

"Speed to market is very important for us and the placement certainly wasn't as time- consuming or costly as putting together a prospectus for shareholders," he said.