9 Feb 2010 07:00
9 February 2010
Motive Television PLC
("Motive" or "the Group")
RAISES £400,000 TO EXPAND DIGITAL TERRESTRIAL TELEVISION TECHNOLOGY ACTIVITIES
CHANGE OF ADVISER AND HOLDINGS IN COMPANY
The Company announces that it has raised £400,000 by way of a subscription, with institutional and retail investors, for 200,000,000 new ordinary shares (the "Subscription Shares") at 0.2p per share (the "Subscription Price") (the "Subscription"). The net cash proceeds of the Subscription, amounting to approximately £384,000, will be used by the Company to continue the marketing and development of its digital terrestrial technology business previously announced in July 2009.
The Subscription is conditional on admission of the Subscription Shares to trading on AIM.
As part of the Subscription, Michael Pilsworth, Executive Chairman of the Company, has subscribed £8,000 for a total of 4,000,000 Subscription Shares.
Debt Capitalisation
In addition, the Company announces that certain Directors have agreed to capitalise deferred salary payments amounting to a total of £18,000 by subscribing for, in aggregate, 9,000,000 new ordinary shares at the Subscription Price ("the Debt Capitalisation"). As part of the Debt Capitalisation Michael Pilsworth, Alistair King and Leonard M Fertig are subscribing for 4,000,000, 3,000,000 and 2,000,000 new ordinary shares, respectively (together "the Debt Capitalisation Shares"). The Debt Capitalisation is conditional on admission of the Debt Capitalisation Shares to trading on AIM.
Following the Subscription and the Debt Capitalisation, the Directors' shareholdings will be as follows;
| Name of Director | Ordinary shares currently held | No. of Subscription/Debt Capitalisation Shares being subscribed for | Resultant holding of ordinary shares | Percentage of enlarged issued share capital held |
| Michael Pilsworth | 6,011,904 | 8,000,000 | 14,011,904 | 2.47% |
| Leonard M Fertig | - | 2,000,000 | 2,000,000 | 0.35% |
| Alistair King | 2,214,286 | 3,000,000 | 5,214,286 | 0.92% |
| Michael O'Rourke | 30,261,904 | - | 30,261,904 | 5.34% |
| Leonard Ryan | 833,333 | - | 833,333 | 0.15% |
Furthermore, certain adviser fees in relation to the Subscription, totalling £30,000 are to be satisfied by the issue of ordinary shares at 0.2p per share, amounting to a total of 15,000,000 new ordinary shares equivalent to 2.65 per cent. of the enlarged issued ordinary share capital.
Application has been made to the London Stock Exchange for 224,000,000 ordinary shares to be admitted to trading on AIM and admission is expected to take place on 12 February 2010. Following admission, the Company will have a total of 566,499,463 ordinary shares in issue.
Change of Adviser
The Company also announces that, conditional on the completion of the Subscription, it has appointed Merchant John East Securities Limited as its nominated adviser.
Suspension
Further to the announcement made on 4 January 2010, the Company advises that dealings in the Company's ordinary shares on AIM are expected to recommence on 12 February 2010.
Contact:
| Motive Television plc Mick Pilsworth | T: 020 3086 9430 |
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| Merchant John East Securities Limited (Nominated Adviser) Simon Clements/David Worlidge | T: 020 7628 2200 |
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| Hybridan LLP (Broker) | T: 020 7947 4004 |
| Claire Noyce/Stephen Austin |
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| Bishopsgate Communications | Tel: 020 7562 3358 |
| Robyn Samuelson/Siobhra Murphy |
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Note to Editors:
Motive Television (www.motivetelevision.co.uk) is a leading media investment company, specialising in digital television technology providers and television rights owners. Based in London, it is listed on the AIM and is led by television industry experts Mick Pilsworth and Len Fertig.
Motive announced at the Interims that it had moved downstream from television production into digital terrestrial television ("DTT") technology. Motive's new CEO, Leonard M. Fertig, is leading this new initiative. Len brings a wealth of contact and experience to the group, as he was involved in many subscription and video on demand ("VOD") channel launches in the USA (including A&E, Comedy Central, Request Television and DirecTV). Len was also the founding CEO of of Central European Media Enterprises Ltd, ("CME"). Len took CME from a start-up to a billion-dollar NASDAQ-listed broadcasting company with operations in eight countries covering 110 million viewers.
Motive's first transaction in the DTT sector was the agreement of worldwide distribution rights, outside of Spain and Italy, for a DTT solution called BesTV®. BesTV®, powered by Adecq Digital S.L., is patented middleware that allows DTT broadcasters to offer hybrid DTT and internet set-top box solutions, providing VOD, pay-per-view ("PPV"), catch-up TV and live pause using their DTT bandwidth. Already in use in Spain and Italy, BesTV® is now well-placed to be rolled out globally by Motive, leveraging the extensive global contacts of the new management team. We are already in discussions with a number of broadcasters in Europe and the USA.
Motive has already announced that is selling its interests in television production:
- A 49.9% interest in comedy production company Brown Eyed Boy, whose most recent hit show, "How Not to Live Your Life", starring Dan Clark, was broadcast on BBC2
- A 100% interest in Dublin-based production company Motive Television Ltd, whose recent credits include "No Place Like Home" and "Summer in the Sun" for Irish broadcaster RTÉ; "Part of What We Are", a major history of Gaelic games for Setanta Sports and 10 live GAA matches for Irish broadcaster TV3 (in association with Asgard Media)