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Prism - Announcement
PRISM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/018949/06)
Share code PIM ISIN ZAE000022257
("Prism" or "the company")
TRADING UPDATE, TERMINATION OF NEGOTIATIONS REGARDING PRISM TRANSWITCH SERVICES
(PTY) LIMITED ("PTSS"), AN UNDERWRITTEN RIGHTS OFFER BY PRISM TO RAISE R34.8
MILLION AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
TRADING UPDATE
After difficult trading conditions in the past year, culminating in
disappointing year-end results, the company has experienced significantly
improved trading and prospects across all business lines and in all regions of
operations.
As a result of these changed conditions, Prism`s core operations have become
profitable and cash generating. Prism has continued it`s aggressive cost
reduction drive and the optimum cost structure has largely been achieved,
thereby further contributing to an improvement in profits. Management remains
cautiously optimistic about the 2003 financial year and a return to
profitability.
Certain key liabilities, namely deferred vendor considerations, net banking
liabilities and outstanding tax obligations have been reduced by R26.3 million
from R85.4 million as at the financial year-end, 30 June 2002, to R59.1 million
as at 31 October 2002.
SALE OF PTSS
Further to the announcement dated 7 October 2002, Prism and Allied Technologies
Limited ("Altech") have terminated negotiations regarding the sale of PTSS to
Altech. This decision was made primarily because Prism and Altech were unable to
reach agreement with respect to the protection of Intellectual Property forming
an element of the transaction and restraint of trade undertakings that would
have been required of Prism by Altech.
RIGHTS OFFER
As announced in the preliminary results announcement dated 7 October 2002, the
Prism Board of Directors has resolved to proceed with a fully underwritten
rights offer of 290 414 410 new Prism ordinary shares of 0,1 cent per share
("new shares") on the basis of 100 new shares for every 100 shares held, at an
issue price of 12 cents per share, to raise approximately R34.8 million before
expenses ("the rights offer").
Underwriters, consisting of The Archway Technology Venture Capital Fund, Horizon
Equity Partners (Pty) Limited, Standard Corporate and Merchant Bank, a division
of The Standard Bank of South Africa Limited, Tomori Enterprises Limited and a
Management Consortium have jointly agreed to fully underwrite the rights offer.
Details of the rights offer, including salient dates and times, financial
effects, conditions precedent and particulars of the required circular will be
announced in due course.
RENEWAL OF CAUTIONARY NOTICE
Shareholders are advised to continue exercising caution when dealing in their
Prism shares.
Johannesburg
4 December 2002
Sponsor Attorneys to Prism
Gensec Bank Limited Prinsloo Tindle & Andropoulos
(Registration number (Registration number 1998/021593/21)
1996/004744/06)
Date: 04/12/2002 05:33:00 PM Produced by the JSE SENS Department
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