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(Sharecast News) - Zinc Media said on Friday that it would make a 1.43m final earn-out payment to the vendors of The Edge Picture Co after the business met its performance targets, while also agreeing a partial debt-to-equity conversion with Herald Investment Trust.
The AIM-traded television, brand and audio production group said The Edge had continued to trade strongly, triggering the final earn-out under the terms of its acquisition.
Of the 1.43m payable, 0.34m would be settled in cash by 15 May, with the remaining balance to be satisfied through the issue of 2,642,312 new shares at 41.5p each, based on the 30-day average market price to 16 April.
The shares would be subject to a 12-month lock-in period, although the board had agreed to a partial release to allow certain institutional investors to maintain their holdings.
Separately, Zinc said it had agreed with Herald Investment Trust to convert around 551,000 of outstanding debt into equity.
Herald would receive 1,311,060 new shares at 42p each, in line with the closing price on 16 April, maintaining its 33.2% shareholding.
Following the conversion, the company's total debt was expected to reduce to 2.9m.
The firm noted that the debt conversion constituted a related party transaction under the AIM rules, with directors stating the terms were fair and reasonable for shareholders after consultation with its nominated adviser, Singer Capital Markets.
Zinc also confirmed it would apply for admission of a total of 3,953,372 new shares, comprising the earn-out and conversion shares, with trading expected to start on or around 22 April.
Following admission, the company would have 29,139,028 ordinary shares in issue.
At 1147 BST, shares in Zinc Media Group were up 2.38% at 43p.
Reporting by Josh White for Sharecast.com.
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