ELECTRONIC sign technology maker Lumacom has added a heads of agreement with Turkish billboard advertising company Global Medya Pazarlama to a recent deal with Disney Theatrical Productions to put one of its signs on the Manhattan skyline.
Lumacom announced the Global deal, was struck in conjunction with Lumacom’s Turkish partner ITOAS, on January 17, three days after it made public its Disney arrangement.
Global is to take up all available advertising space on two joint venture signs currently being erected in Taskim Square, Istanbul, under a three-year wholesale space deal that is expected to gross $US3 million over that time.
Lumacom and ITOAS will be entitled to a 50 per cent share in net income from the signs.
The Global deal becomes binding when Global pays Lumacom a deposit of $US50,000. That payment is due on January 21.
ITAOS also bought a 54 square metre sign for its own use as a corporate branding sign for the Marmara-Pera Hotel, a hotel owned by its parent company. That sign has been installed and is waiting final commissioning.
Global also has the first right of refusal to enter into a similar arrangement for up to two additional signs in Istanbul.
The Disney deal involves placing one of Lumacom’s signs over The Nasdaq Building at 4 Time Square to display Disney’s Lion King logo during the day and any night-time advertising Disney wants to run to trial various video concepts.
Disney will be undertaking a 30-day trial assessment before committing to the full one-year deal.
Both parties are waiting for landlord approval before the trial period can start.
Graphics for the Disney logo have already been commissioned and the production process has commenced.
Subject to weather, Lumacom expects commissioning of the Nasdaq building sign by the end of February.
Lumacom’s share price leapt 20 per cent to 12 cents on the day the Disney deal was announced.
The company also conducted a placement, on January 10, of more than five million shares at 12 cents a share to clients of Intersuisse Corporate and Tolhurst to raise $606,000.
Proceeds from the capital raising are going towards business development in parallel with the commissioning of the Nasdaq building sign.
Each share also has two attaching unlisted options with one exercisable on or before January 31 2007 and one at 15 cents on or before July 31 2007.
The majority of investors in the offer were current or past top 20 Lumacom shareholders.
Lumacom also announced late last year that it had entered into an exclusive agency agreement with Clear Channel Spectacolor, a major global outdoor advertising player.
The Lumacom sign technology allows for the transmission of images, particularly moving images, using far less light than competing forms of technology.
