Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Think their bid is the reserve bid so i guess they have to proceed just in case. If they dont get MobiTV maybe the should have a look at Mirada, they've got just about the right amount of cash as it happens....
Having made a placing conditional on the successful outcome of the auction, the Directors have gone ahead with the placing anyhow despite coming second in the auction.
Are they mad?
They have clearly fallen for the charms of the commission hungry snake oil salesmen in the City.
Credibility is shot to pieces.
"Market unnerved by ...and the $75 million debt". The debt is irrelevant - AMO are not bidding for the company but for "the trade and assets" - a bit like a company in administration in this country.
Market unnerved by level of MobiTV $34 million losses last year , and the $75 million debt.
Can AMO management turn it round ?
Still the US appears to be recovering from Covid so could be a good time to buy.
I'm still holding and might buy a few more.
SF Times - 2/3/21:
Streaming TV company MobiTV reports net loss of $34M, files for Chapter 11 bankruptcy
Television streaming company MobiTV, based in Emeryville, filed for Chapter 11 bankruptcy reorganization Monday on the heels of huge financial loss for 2020.
In a note to partners, the company said the bankruptcy action "does not mean the company is going out of business," adding that it has secured $15.5 million in financing from T-Mobile to fund operations until it can figure out a way to remain in business and meet its debt obligation, likely by selling off assets.
While the pandemic lockdowns have been a boon for streaming services like Netflix, they were apparently a growth killer for MobiTV, which reported a net operating loss of $34 million for 2020. The company, which was founded 1999 to bring on-demand TV to mobile devices, generated $13.5 million in revenue last year.
"Although the company projected significant and material subscriber and revenue growth for 2020, the Covid-19 pandemic and related stay-at-home orders, materially impaired the company’s growth opportunities," CFO Terri Stevens declared in the bankruptcy filing. "As a result, the company found itself with limited liquidity and at risk of default under its debt agreements."
At the time of the bankruptcy filing, MobiTV owed $75 million and had roughly $19 million in assets.
Under Chapter 11 bankruptcy protection, the company plans to sell off assets and possibly attract a stalking horse bidder, which is when a potential buyer sets a minimum price with an initial bid for the assets, making it so that other bidders can't go any lower.
MobiTV earns its revenue through contracts with subscription television customers, broadband providers and cellular device carriers, which use its technology to build customizable streaming platforms.
In 2019, the company raised $50 million in funding and $21 million in 2017, from repeat investors Ally Bank and Oak Investment Partners.
MobiTV had 86 employees at the time of the filing, which disclosed that received a $3 million PPP loan.
The company expects the bankruptcy restructuring to be completed in several months.
Https://www.bizjournals.com/sanfrancisco/news/2021/03/02/streaming-tv-company-mobitv-files-chapter-11.html
https://www.mobitv.com/restructuring/
The market doesn't seem to like the idea of a bid (and a placing) but it's not a huge investment and could work out well for them on a longer timescale. Happy to sit tight for the moment