DQ Entertainment to commence dividend policy

14th Mar 2013 12:17

DQ Entertainment, the AIM-listed production and distribution group, rose after the company announced plans to commence its dividend policy with the payment of a final dividend for the year ending March 31st 2014. The company also announced the conditional placing of 20.3m new ordinary shares at 20p each, with the proceeds being used to provide replacement working capital to certain divisions within the group. The funds, which are expected to total in the region of £3.7m after expenses, will be used to replace that used to finance The Junge Book feature film pilot and to purchase new hardware and software. Chief Executive Officer Tapaas Chakravarti said: "We are delighted to have had such strong support both from new and existing shareholders enabling us to achieve such a successful fund raising. The response to this placing underlines the continued support and confidence in the group and its future business prospects. We are particularly excited about The Jungle Book feature film." To work on the film the firm has appointed Screenwriter Billy Frolick (Madagascar, Holy Cow), Co-Directors Jun Falkenstein (The Tigger Movie, The Smurfs, Despicable Me) and Kevin Johnson (Alvin and the Chipmunks: Chipwrecked, Harry Potter & The Sorcerer's Stone, Astro Boy, Stuart Little), and Production Designer James Hegedus (Shrek). Of the shares, 6.6m will be admitted to training on March 19th, and the remaining 13.7m on April 10th. The share price leapt 12.23% to 19.50p by 12:30 Thursday.NR