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.
LUM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held