Cable operator SCN embarks on share issue four times bigger than its revenues

Canada-based Stream Communication Network (SCN), owner of a cable television operator in the Małopolska region, is hoping to raise $10 million from its new share issue. The company has already signed the necessary contracts with investment advisors EMG Corporate Finance Ltd. and Broadmark Capital. "The money will be designated for on-going current investment projects, and in particular to buy other cable operators and to modernize its network," said Adam Wójcik, president of Polish Stream Communications. However he admitted that the $10 million, in terms of normal sector outlays, is a small sum. Despite the fact that SCN is registered in Canada, its only operating subsidiary is its Polish loss-making unit. Polish Stream Communications will probably have a 2003 consolidated loss of about zł. 4 million on revenues of zł. 10.5 million. "I am not sure whether buyers will be found, as the issue is four times higher than the annual revenues of the company," said a cable television sector analyst. (Puls Biznesu, p. 14) M.M.