Catalyst Media Regulatory News (CMX)

5 Jan 2005 15:45

Catalyst Media Group PLC05 January 2005 5 January 2005 Catalyst Media Group PLC Catalyst Media Group PLC ("the Company" or "CMG") announces that it has issued14,678,968 new ordinary shares of 1p each ("Shares"), representing 8.28 per centof the Company's share capital as enlarged by the issue of Shares, to Champ CarWorld Series LLC ("Champ Car") in relation to an agreement dated 15 December2004. The Shares, which have a value of £1.14million (US$2.2million) based onthe closing share price of 7.75p on 12 November 2004 (the date prior of thesuspension of trading in the Company's shares) have been issued in considerationfor Champ Car agreeing to satisfy certain financial obligations of up to£1.14million (US$2.2 million) of the Company's television production subsidiaryBetelgeuse Productions, Inc ("Betelgeuse") incurred by Betelgeuse whilstproviding television production services to Champ Car for the 2004 Champ CarWorld Race Series. Champ Car has given certain undertakings with respect to thesale of the Shares such that they may be only be sold in specified tranchesduring a 90 day period from the date that the shares re-commence trading, suchsales to be with the assistance of CMG. If funds received from the sale of theShares by Champ Car exceed payments made by them under this agreement thebalance will be payable to CMG. If there is a deficit, CMG is required to payany shortfall to Champ Car. Any such shortfall would not increase the Group'sliabilities and would only result in an acceleration of cash outflows from theGroup. However, as the proceeds of the sale of the Shares by Champ Car reducesBetelgeuse's, and hence the Group's, overall liabilities, CMG will be in astronger financial position following any sale of Shares by Champ Car. Application will be made for the Shares to be admitted to trading on AIM.Admission is anticipated to be effective from 12 January 2005. The Company announced on 12 November 2004 that it was in advanced negotiationsto acquire a 20 per cent stake in Satellite Information Services HoldingsLimited ("SIS") from United Business Media ("The SIS Acquisition"). The SISAcquisition would constitute a reverse takeover in accordance with the AIMRules. Accordingly, the Company announced the suspension of its shares fromtrading on the Alternative Investment Market of the London Stock Exchange. Thesenegotiations are continuing and the shares remain suspended for the time being.Further announcements will be made as appropriate. END Enquiries Paul Duffen, Catalyst Media Group PLC020 7927 6699 This information is provided by RNS The company news service from the London Stock Exchange