re: lumacom >> arthur the following report should answer some of your questions. the placement to mega group, seems to be ok. mega group is providing financial assistance
LUMACOM LIMITED 2002-12-18 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
WA based Lumacom Limited has signed a major joint venture alliance
agreement with one of Europe's largest outdoor advertising and
billboard companies, the Mega Group.
The agreement not only provides a unique opportunity for the WA based
company to enter at the upper level of the international media arena,
it also consolidates Lumacom's reputation as a credible and
progressive new player.
The Mega Group is offering its support in several significant ways.
Additionally the Mega Group has shown a keen interest in taking a
shareholding in Lumacom. As such, Lumacom have arranged for a
placement of three million (3,000,000) shares at 7.5 cents each. This
will place the Mega Group in the top 20 shareholder list.
"The Mega group's shareholding is welcomed with excitement and is not
only a sign of unquestionable support and confirmation of the
benefits of Lumacom's products, but provides a stamp of approval from
industry specialists that endorses Lumacom's potential in the
advertising Industry," said Managing Director Rodd Sala. "It brings
enormous credibility as well as industry insight". Discussions in
Progress were advised at Lumacom's recent AGM.
The joint venture agreement covers representative sale of Lumacom
products by the Mega Group and also importantly the cooperative
installation of Lumacom signs on high yielding, highly visible Mega
Group sites.
Lumacom will share advertising revenue with the leading outdoor
advertising group, providing an extremely lucrative revenue stream
over terms of typically; 4 and 5 years duration. Lumacom's versatile
product line ranges from the innovative LumaPanel system through to
the highest resolution video action replay screens. These products
take advantage of "psycho-physics" based principals which present
high resolution and high quality images whilst reducing the amount of
pixel's normally required.
The Mega Group operates out of London and all business evolving from
the alliance will be conducted from the UK capital. The Group
consists of a consortium of offices covering 13 countries across
Europe. The collective will soon expand to welcome Russia and the
Middle East into the union.
The Mega Group is renowned for its success in large out door
billboards and 'building wraps' which incorporate massive stretch
vinyl billboards covering entire building facades.
The unification is significant for Lumacom considering the industry
status of the Mega Group, which occupies a leading position in
outdoor advertising, generating turnover in the range of 100 million
dollars per annum.
The Chairman of Mega, Mr Andy Hopkinson today announced, "We are very
excited by the agreement reached with Lumacom. Its superior product
rangeand unique advantages - particularly its LumaPanel system -
provide an unmatched and hugely competitive market edge."
Lumacom signs will be installed on major and iconic sites where major
audience numbers prevail and advertising dollars are maximized. The
joint venture for cooperative installations provides a 50% share to
Lumacom in the net revenue achieved under advertising contracts for
signs entered into. This will provide an on-going source of revenue
for Lumacom.
BARCELONA SCREEN
On the back of this highly strategic agreement the Mega Group has
placed its first order for a Lumacom screen for installation in
Barcelona, Spain.
The official order, valued at slightly less than $1million has
already been received and the purchase deposit been paid.
Mega is providing cash payment as security in advance to expedite
manufacture and installation of the screen. Commissioning is
scheduled for mid-March 2003. Manufacture is being undertaken in co-
operation with LED manufacturing giant Opto-Tech Corporation, under
the strategic alliance agreement announced with them at Lumacom's most
recent AGM.
Once an advertising contract is entered into for the Barcelona site,
Lumacom will share 50% of the advertising income. Lumacom's share is
anticipated to be in the order of $750,000 to $1 million per annum
for 4 years with an option to renew.
"The cooperative agreement and the strength of it, substantiated by
this first order, is a direct result of the Company's recent focus in
the European market," said Rodd Sala. He stated that Lumacom had
commenced its marketing efforts into Europe at the beginning of 2002
and quantified, "The first deal in Barcelona is not only lucrative,
but will provide an excellent reference site - some 80 million people
visit this Spanish tourism centre every year and you are not
presented with a much better opportunity than this as your launch
reference site for a marketas big as Europe".
The Mega group is further negotiating other major and strategic
sights on a similar basis to the Barcelona installation throughout
Europe, as well as direct sale opportunities. These will be announced
as they occur.
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