4 Nov 2010 13:21
4 November 2010 iPoint-media plc ("iPoint" or "the Company")
Financing and Restructuring Update resulting in Fundamental Change in Business
iPoint-media plc , a provider of live, interactive video applications and content delivery platforms for web and 3G mobile, announces that it has entered into advanced negotiations regarding the financing of the operations of its Israeli subsidiary.
As stated in previous announcements, significant slippage in its business plan has resulted in the requirement for the Company to secure an injection of cash to support its on-going operations. In order to be able to do so, the Company indicated that it would need to implement a significant restructuring of its business and capital structure so as to create a basis for a new fundraising.
The restructuring and fund raising are still being negotiated but are expected to involve:
* A funding at a new subsidiary level and not at the Company level * a restructuring of the outstanding loan notes (the "Loan Notes") of the Company such that these liabilities would be eliminated from the Company's balance sheet and would be assumed by the new subsidiary; and * a significant dilution of the ownership by the Company of its Israeli operating subsidiary, resulting in a small minority stake;
Should the restructuring not be successful and absent other funding solutions it is likely that the financial creditors of the Company would be able to take control of the Company.
A restructuring as outlined herein would constitute a fundamental change of business under AIM Rule 15 and will require shareholder approval at a general meeting. Similarly, the restructuring of the Loan Notes requires approval by the Loan Note holders at a separate meeting. The Company is in the process of producing the required circulars to shareholders and loan note holders setting out details of the proposed transaction. These will be sent out once the terms of the proposed financing have been finalised.
Further enquiries:iPoint-media plc +(0) 972 544 450 667Muki Geller
Libertas Capital Corporate Finance Limited +44 20 7569 9650
Thilo Hoffmann Andrew McLennan
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