(Alliance News) - Advertising technology provider Matomy Media Group PLC extended a major asset sale deadline Thursday whilst it also continued to struggle to secure a settlement with bondholders amid uncertainty over its financial performance.
In April, Matomy agreed to sell its 90% stake in technology firm Team Internet AG to minority shareholder Rainmaker Investments GmbH for USD36 million cash. Earlier in June, the pair of firms agreed to extend the deadline for due diligence on the deal until end end of June.
On Thursday, Matomy explained it now estimates that a further 45 days will be required in order to complete due diligence on the deal. Matomy emphasised that there was "no certainty that such discussions will result in a binding agreement or that such an agreement will be concluded."
Matomy also warned that a proposed plan with bondholders regarding a settlement of a dispute over the USD30 million convertible bond issued in February 2018 to buy a further 10% stake in Team Internet was now in jeopardy.
Matomy explained there was "uncertainty regarding the feasibility of the execution of the proposed plan in its current structure" and that the plan "will require adjustments in order to adapt it to the current and anticipated activity and financial position of the company".
Earlier in June, Matomy had warned some of its customers had been deactivated following compliance changes. The firm is still working on a means to mitigate the effects of these compliance changes. In the meantime, the financial impact of the deactivations is yet to be determined.
Shares in Matomy were untraded at 3.10 pence in London on Friday.
