Imagi International Holdings Ltd (OTCBB: IINHY
) has announced large scale review of operations which has mostly negative effect towards the staff.
The company has cut off their US subsidiaries from any funding, the working contracts for 30 employees were terminated and the Los Angeles based office closed. The company was left with only a few important staff members being utilized as consultants and has transferred the functions of the closed office to other contractors.
The latest report was a third notice related to the still ongoing discussions with potential investors, as the company seeks to secure more working capital. Upon continuing negotiations management issued several warnings that the investment will likely come under unfavorable conditions - such as outstanding stock dilution, issuance of preferred securities or even a change in major share ownership.
Imagi is seeking investment of somewhat $30 million. All the potential capital increase opportunities will still be subject to shareholders' approval, so heavily unfavorable term might not pass in the end. The proceeds should be used for continued creation of CG animation movie the company is currently making.
With their US office closed the company still has two more in Hong Kong and Tokyo as well as continues trading under the Stock Exchange of Hong Kong. Their stock is poorly traded in both the exchanges.