Last checked at 11 Feb 2011 07:00
11 February 2011
Mobile Streams Plc
("Mobile Streams", the "Company" or the "Group")
Resolution of matters relating to Zoombak Management Services Agreement
As announced on 28 September 2010, Mobile Streams' agreement to provide management services to Zoombak, LLC ("Zoombak", formerly Connected), the location based devices and services subsidiary of TruePosition, Inc. ("TruePosition") ended in early January 2011 ("the Zoombak management services agreement").
As also mentioned in the 28 September 2010 announcement, in addition to the fixed annual management fee that was paid by TruePosition to the Company, the Zoombak management services agreement included certain performance related provisions whereby bonus sums would become payable to Mobile Streams depending on the financial performance of Zoombak. The Company had raised invoices amounting to its calculation of these bonuses in prior years; however, TruePosition disputed these invoices.
Mobile Streams and TruePosition have now negotiated and executed a settlement agreement that amicably resolves the outstanding matters relating to the Zoombak management services agreement. The settlement agreement includes customary mutual non-disparagement and other clauses. Furthermore, while not admitting to liability, TruePosition will make a one-time payment of $250,000 (approximately £150,000) to Mobile Streams within 10 days of the execution of the settlement agreement. The resolution relates directly only to the Zoombak management services agreement, not to other elements of the relationship between Mobile Streams and TruePosition and its parent company Liberty.
Commenting, Simon Buckingham CEO of Mobile Streams said: "With this resolution relating to Zoombak in place, I'm now free to dedicate 100% of my attention and energy to continuously improving our Appitalism service and strengthening the Mobile Streams business globally. Coupled with the sale in December of Ringtones.com for $750,000, the addition $250,000 cash received from the Zoombak settlement further strengthens Mobile Streams' cash position and balance sheet. Mobile Streams can focus in 2011 on getting a return on our investment in the Appitalism service and platform just as mobile and apps become an increasingly important part of the overall digital media marketplace."
Enquires:
Mobile Streams +1-646-588-0583
Simon Buckingham, Chief Executive Officer
Gabriel Margent, Chief Financial Officer
Victoria Tayler, Public Relations Manager +41 79 4301915
Nominated Adviser
Grant Thornton UK LLP +44 (0)20 7383 5100
Philip Secrett
Broker
Singer Capital Markets Limited +44 (0)20 3205 7500
Jeff Keating