Photo booth operator Photo-Me Australia (ASX:PTO) is proposing to convert close to $1 million long-term debt into shares issued to the creditors, creating a new majority owner in the process.
The company has called an AGM to vote on the proposed issue of 155.8 million shares to Oceanside Securities, and 20 million shares to Mungala Investments.
The resulting transfer would give Oceanside a 54.3% stake in Photo-Me, compared to its current 26.5%. Mungala’s holding would be diluted slightly, from 21.7% to 18.9%.
The independent expert selected to examine the proposal, Nexia ASR, said the terms of the proposed transactions are not fair for non-related shareholders, but are reasonable.