Digital Vision, the Swedish concern that makes Nucoda color grading systems, is issuing shares to shore up its shaky financial position. The Stockholm company, granted reorganization in October, will issue up to 163 million shares to raise roughly $3.2 million (U.S.) Another set-off issue is expected to reduce the company’s debt burden of between $4.5 million and $7 million. Digital Vision trades on the Swedish stock exchange. Shares have lately traced at around .45 kroner, or about 6 cents American.
The company has about 50 employees in Stockholm, London, Los Angeles and Hong Kong. Its Nucoda line is employed by broadcasters in post-production; one recent notable deployment being for CBS’s “60 Minutes” in June. ABC, Fox and PBS are on the company’s client list.
Digital Vision in September reported cash problems, saying it immediately needed 5 million Krona, or $642,000 for continued operations. A sharp drop in sales caused by the Hollywood writer’s strike and the econmic collapse was blamed for the company’s financial situation. Revenues last year totaled 115 million Krona, or about $14.8 million. The current quarter’s revenues are about $2.2 million so far, with more orders expected before the close of the year, according to CEO Gert Schyborger.
The share issue is scheduled to start in mid-Febrary and go through March. To use the proceeds toward debt repayment, the company will request a three-month restructure extension beginning Jan. 9. A bridge loan of $385,000 has been secured to continue operations until the share issue is executed.
CATEGORIES
LATEST ARTICLES