KEY POINTS:
Diligent Board Member Services has attracted another investor, with United States-based shareholder Carroll Capital planning to invest US$1 million ($1.8 million) in new capital.
The deal is conditional on the closing of a recently announced US$2 million deal with Spring Street Partners, as well as approval by Diligent shareholders and NZX, and a definitive agreement between the Carroll Capital and Diligent.
Diligent was aiming to hold a shareholder vote next month.
If the deal is successful, Diligent will not look for further financing, the company said.
Diligent decided to accept the investment offer to help secure the company's financial position, and to bolster the development of its subscription business.
Carroll Capital, owned by Kenneth Carroll, took an 8.7 per cent stake in Diligent last month. Its stake would rise to 15.94 per cent of the expanded capital of 120 million shares.
Spring Street would hold 16.67 per cent of Diligent. As with the Spring Street deal, Carroll Capital will buy 10 million convertible preferred shares at US10c per share, totalling US$1 million.
The shares will carry a dividend of 11 per cent a year, with Diligent paying the dividend in either cash or new preferred shares at US10c each.
The preferred shares are convertible at any time into Diligent shares on a one-for-one basis.
Diligent shares last traded on Friday at 15c. Carroll Capital's US10c per share deal converted to $19.34c.
Diligent listed in December 2007 with an issue price of $1 per share.
Listed in New Zealand and based in New York, the company produces Diligent Boardbooks, a web-based system to simplify board meeting materials.
The company's sales and licence fees were up on last year, but it has fallen far short of its goal of US$10.8 million in annualised licence fees by the end of last year.
- NZPA
