RE: Ram Investments [RAM]21 Nov 2012 07:03
[RAM]
Signed Heads of Terms to form a Joint Venture with Stream TV Networks Inc, setting up a new company (NewCo). The primary focus is the commercial B2B reseller rights across the UK's Digital out of Home market sector of Stream's glasses free Ultra-D™ 3D technology. The partnership understanding will also seek that the NewCo looks at the wider commercial opportunities of Ultra-D™ across Europe and other territories going forward in its relationship.
Stream is a Philadelphia-based media company focused on the enhancement of entertainment and communications experiences through technology. The Company is the owner of Ultra-D™, 3D without glasses technology and has previously announced two strategic partnerships with Hisense Electric Company, Ltd, a premier TV manufacturer in China and among the fastest growing TV brands Worldwide and Pegatron, a premier ODM/OEM of multiple industry leading technology products including TVs, Playstation, iPhones and iPads.
The current Digital Out Of Home (DOOH) in the UK is worth £2.6 billion, a 12.6% year on year increase. The RAM Board believes that the digital signage market sector will be replaced by Auto-stereoscopic screens (3D without Glasses). The Stream Ultra-D™ technology will be adopted by RAM in all viable retail and B2B destinations. According to industry research by NPD DisplaySearch, the global market forecasts for shipped 3D screens will be over 65 million units in 2013 and approximately 91 million units in 2014. The UK and European markets will account for 15 million and 20 million respectively. 3D screen penetration is forecast at 80% of total shipped screen (including 2D) units by 2015.
The Board believes the Joint Venture is well positioned to exploit the new Ultra D technology and achieve a dominant market share.
Raja Rajan, COO of Stream TV Networks stated:
"The RAM Team has impressed us with its vision and foresight for RAM and we are keen to exploit the many possibilities that the new JV could realise. We anticipate RAM will use our 3D technology on TVs to expand their network even further by introducing the Ultra-D 3D without glasses."
Richard Prosser, CEO of RAM commented:
"The Ultra-D technology is one we expect will become the standard for 3D TVs without glasses. We believe the technology will become dominant in both the consumer and business advertising markets and we are very pleased to be integral in the role out and distribution of the technology throughout the United Kingdom and exploring business channels in Europe and other territories."
Investment in Stream and Issue of Equity
As part or the transaction RAM will also invest directly into Stream. RAM will invest up to £3.3 million into Stream in cash. Additionally, as a first step, RAM will allot 23,581,522 new Ordinary Shares of 1p each at a price of 1p per Ordinary Share (5% of outstanding shares) to Stream. In order to facilitate the investment and strengthen the working capital position of the Company, RAM will seek to raise up to £4 million in new funds. This funding will require and be subject to the approval of shareholders at a general meeting, the notice for which will be posted today. Please refer to the separate announcement regarding the notice and resolutions of the general meeting.
Application will be made for 23,581,522 new Ordinary Shares in RAM, which, when issued will rank pari passu with the existing Ordinary Shares in issue and application will be made for such new Ordinary Shares to be admitted to trading on AIM. This is expected to be on or about 27 November 2012.
Following the issue, the enlarged share capital of the Company will be 495,211,974 Ordinary Shares