LONDON (Alliance News) - Motive Television PLC on Friday said it is still in talks with holders of its convertible loan notes, which are due to mature on December 31.
The broadcasting technology company had previously said the convertible loan notes would need to be extended or further funds raised to pay them down if it is unable to reach an agreement with investors.
"The directors believe that progress has been made with the CLN Holders. However if negotiations do not reach a positive conclusion, or further funding cannot be secured in the event the CLN's are repayable, the company would have to take action to reduce its cost base and to consider whether the company would be able to continue to trade," Motive Television said in a statement on Friday.
"The directors are confident that further injections of funds can be secured to fund the company's working capital position and that further revenue generating contracts will be won," Motive Television added. The company raised GBP350,000 via a share issue in September.
Motive Television originally issued GBP4.8 million of fixed interest convertible loan notes in October 2010. It now has a balance of outstanding convertible loan notes with a face value of about GBP3.0 million.
Motive posted a pretax loss of GBP1.8 million for the half year to end-June, widened from a pretax loss of GBP1.6 million a year before, as revenue rose slightly to GBP673,410 from GBP577,740, mostly as a result of higher financial costs.
Shares in Motive Television were down 33% at 0.0200 pence on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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