Previously posted under wrong ticker
I havent seen this before
Anyone care to comment???
eGlobal International Limited (.eGlobal.)
eGLOBAL ANNOUNCES $5 MILLION CAPITAL RAISING
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Australian technology company eGlobal International Limited has today (Monday, 18 August
2003) announced a proposed A$5 million capital raising program to fund acquisitions and future
growth opportunitiesin the domestic and internationalsecurity and smartcard market.
eGlobal is in discussions with ABN AMRO Morgans Corporate Ltd with regard to them
underwriting the whole program, although the program is not dependent on securing any
underwriting commitment.
eGlobal is also proposing to use A$1,000,000 of the amount raised to fund a planned capital
return of 3.3 cents per ordinary share to shareholders. Completion of this capital return will
resultin the automatic conversion of the 36.8 million unquoted A class shares held by eGlobal's
parent, eGlobal International Holdings Limited (EGH), into ordinaryshares and subsequent
application for quotation of those shares.
Thiscapital return issubject toshareholder approval to be sought at a general meeting to be
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held on 17 September 2003 and the record date to participate in this return will be set after this
approvalis obtained. The notice of meeting and accompanying explanatory materials have also
been lodged with ASX today.
The proposed capital raising program comprises a non-renounceable rights issue to ordinary
shareholders of approximately 30 million ordinary shares on a one-for-one basis and a public
offer of 37 million new eGlobal ordinary shares. It is proposed that all shares will be offered at
7.5 cents per share, representing a 21 per cent discount to the average ASX trading price for
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eGlobal of 9.5 cents per share for the 5 trading days ending on 15 August 2003, ignoring any
price impact of the proposed capital return. A prospectus isin preparation and will be lodged
shortly.
eGlobal chairman Jim Goldburg said the capital raised will be used to fund the proposed capital
return and the cashcomponent of the acquisition of the intellectual property assets of Imbros
Corporation Inc (Imbros) if it proceeds, with the balance (after issue costs) used as working
capital to enable eGlobal to capitalise on future market opportunities.
.eGlobal has a clear vision and strategy to broaden its technology and product ranges and
expand its business presence in the important technology markets of Asia and North America,.
he said.
As announced previously, the general meeting called for 17 September 2003 will also consider
approval of eGlobal's proposed acquisition from EGH of eGlobal's associate, eGlobal
International (Hong Kong) Limited (EGHK). The explanatory materials for thismeeting include a
report from an independent expert, PKF Corporate Advisory Services (WA)Pty Ltd, as to the
fairness and reasonableness to the non-associated shareholders of the acquisition terms as
required by ASX Listing Rules 10.1 and 10.11. Shareholder approvalisthe last remaining
condition tothis acquisition to be satisfied.
.eGlobal.s evolution into a global technology group will be assisted by the strategic acquisition
of EGHK, which will position eGlobal as a leadingplayer in China.s smart cardsolutions
market., Mr Goldburg added.
.The working capital from the rights issue will enable us to service the opportunitiesin China
following the EGHK acquisition, while also maintaining our ability to identify and act on future
growth opportunitiesin other markets..
eGlobal managing director Gordon Chalmerssaidthe acquisition of EGHK will provide eGlobal
with access to signed contracts and proven management in China, the world.s fastest-growing
economy.
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eGlobal.s future Chinese contracts encompass not only the continued utilisation of eGlobal.s
smart-card technology, but also the use of cutting-edge biometric technology.
The acquisition of EGHK means all revenues generated from both current and future Chinese
projects willnow be reported back to eGlobal in Australia. EGHK is expected to generate
approximatelyA$9 million in revenue for eGlobal in the current financial year.
Mr Chalmers said the proposed capital raising isa key component of eGlobal.s planned
evolution into a worldwide technology group with a strong presence and proprietaryintellectual
property in the high-growth markets of China and North America.
He said the acquisition of EGHK, in conjunction with eGlobal.s earlier merger with Citadel
Securix, provides the expanded eGlobal group with annuity type income streams and a wider
geographical spread of offices.
.The working capital injected from the capital raising will enable us to drive the expanded
business forward to commercialise the many international opportunitiesfor our smart card
technologies,. he said.
The public offer will be subject to shareholder approval for the capital return and implementation
as well asshareholder approval under ASX Listing Rule 7.1. None of the new ordinary shares
to be issued (under either the public offer or the rights issue) will participate in the planned
capital return (but will otherwise rank equally with ordinary shares) as they will not beallotted
until after the record date for participation in the planned capital return.
Shareholder consideration of eGlobal's proposed acquisition of the intellectual property assets
of Imbros has, as announced earlier, been deferred until the annual general meeting to be held
later in 2003. However the consideration payable by eGlobal with respect to this acquisition has
been revised down as part of the ongoing contract negotiations so that it is now to be
A$1,000,000 in cash (as previously) but only 20 million ordinary eGlobal shares plus an
additional 15 million ordinary eGlobal shares if clear title to certain of the Imbros assetscan be
satisfactorily established.
ABOUT eGLOBAL
eGlobal International (ASX:EGI), headquartered in Brisbane, with offices in Sydney, Canberra
and Melbourne, is an Asia Pacific based integrator of Enterprise Business Applications, Smart-
card and Security Technologies covering Managed Security Services, Security Consulting (with
an emphasis on eBusiness), Security Products and IP Interception (for Law Enforcement
Agencies) for the Government, Telecommunications, Automotive, Mining, Health and Financial
industries in Australia. Visit http://www.eglobal.netand http://www.citadel.com.au for further
information. All trademarksmentioned in this release remain the property of their owners.
Released: 18 August 2003
Further Information: Gordon Chalmers
Managing Director
eGlobal International Limited
(07) 3369 6899
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