LONDON (Alliance News) - Motive Television PLC said Wednesday it has not been able to complete a transaction with its largest convertible loan note holder as it was not able to reach an agreement with other convertible loan note holders.
Earlier this month the company agreed a deal with the largest holder to acquire its GBP1.4 million of convertible loan notes for GBP100,000 in cash and a five year warrant to buy a 5% stake in the company.
However, as it was unable to reach an agreement with other loan note holders, and as a result it has now convened a meeting of the holders for January 29 to seek an extension of the redemption date of the convertible loan notes from the end of 2015 to the end of 2017.
The largest holder has agreed to vary the terms of the previous deal and extend its completion date until February 19. As a result Motive will now have to pay GBP150,000 in cash in order to acquire the GBP1.4 million in loan notes.
Motive added that its working capital continues to be "tightly managed", and it continues to "rely on the support of its creditors, staff and of its directors in order to continue to trade."
Shares in Motive were down 17% at 0.0167 pence Wednesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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