nice13 Dec 2018 11:40
RNS Number : 3529I
Matomy Media Group Ltd
23 November 2018
November 23, 2018
Matomy Conducts Discussions with Bond Holders and Shareholders of Team Internet
Matomy Media Group Ltd. (LSE: MTMY, TASE: MTMY.TA) ("Matomy") today announced that it is conducting discussions with the shareholders of Team Internet, in which Matomy currently holds 90% of the share capital, regarding the terms of the purchase by Matomy of the remaining 10% stake in Team Internet. The terms of such purchase were previously concluded between the parties in an agreement and titled, Third Sale Exit. The purpose of such discussions is to align the terms of the purchase with the current and anticipated cash flow and results of Matomy and Team Internet and defer the payment or portions thereof due on November 30, 2018. As previously disclosed, failure by Matomy to pay the consideration for the Third Sale Exit, may trigger a right of Team Internet's shareholders, among other remedies, to repurchase some or all of Matomy's shares in Team Internet at a price of 60% of the original purchase price paid by Matomy on such shares. In connection with these discussions Matomy also approached the trustee of the outstanding bonds of Matomy (the "Trustee") in order to update on recent developments and assess the possibility of adopting agreed revisions to the terms of the bonds. Matomy believes that a prudent approach to its long term financial planning mandates a discussion with the bond holders with the aim of adjusting their terms so as to optimize the utilization of Matomy's resources and ensure that Matomy preserves the value of its assets and meets all its obligations. Matomy approached the Trustee regarding the convening of a meeting of the bond holders and it expects that a meeting of the bond holders in that respect will take place in the coming days and that ongoing discussions will be conducted with the elected representatives of the bond holders. It is important to note that Matomy is not in default under the bonds and there is no cause for immediate repayment of the bonds. Therefore, the foregoing discussions are a pre-emptive measure meant to ensure long term financial planning. Matomy is putting together a plan for a comprehensive agreement for the benefit of all stakeholders, which subject to the outcome of the proposed discussions, is expected to include a capital raising with the participation of key shareholders, in order to improve its equity positioning. There can be no assurance with respect to the outcome of the foregoing discussions or with respect to the capital raising.
A flash report of Matomy's selected reviewed accounts for the nine months period ending 30 September 2018 is attached hereto, to be followed by the publication of Matomy's full reviewed accounts for the said period after 30 November 2018.
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