Last checked at 31 Mar 2017 14:22
31 March 2017
TMT INVESTMENTS PLC
("TMT" or the "Company")
Moscow office
Since May 2012, TMT's Moscow-based staff have been based in an office that belongs to a cooperative ("Orgtekhnika") of which TMT's senior managers Alexander Morgulchik and German Kaplun are members. German Kaplun also owns 19.28% of the issued share capital of TMT. The office has been provided rent free since 1 February 2016.
TMT has now entered into an agreement to resume paying rent and related services to Orgtekhnika from 1 April 2017, with rent at the rate of US$371 per sq meter per year (inclusive of taxes) of space utilised. The board believes this represents a discount from the prevailing market rate for similar office space in Moscow. Together with other related expenses (support personnel, legal support, company car, security services, etc.), the total costs to TMT will amount to US$7,883 per month (US$94,597 per year). Payments have been deferred until 31 December 2019. There are currently 5 staff involved working substantially full time on TMT's business.
German Kaplun and Alexander Morgulchik (respectively Heads of Strategy and Business Development) are, or have in the past twelve months been, substantial shareholders in TMT and Orgtekhnika is accordingly deemed to be a related party. In accordance with the AIM Rules, the directors of the Company, all of whom are independent for the purposes of this transaction, having consulted with the Company's nominated adviser, ZAI Corporate Finance Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Background:
As announced by the Company on 1 October 2012, TMT originally started paying rent to Orgtekhnika from 1 October 2012. Rent was being paid to Orgtekhnika at the rate of US$700 per sq meter per year of space utilised. That represented a discount from the prevailing market rate for similar office space in Moscow at the time. Together with other related expenses (support personnel, company car, security services, etc.), the total costs to TMT were US$14,384 per month (US$172,608 per year). Following the subsequent negative developments in the Russian economy and Moscow office rental market in particular, starting from 1 February 2015 these office costs were reduced to US$7,000 per month and, as reported in the Company's 2015 annual report, from 1 February 2016 temporarily reduced to zero.
For further information contact:
TMT Investments plc Alexander Selegenev Executive Director www.tmtinvestments.com
| +44 1534 281 843 alexander.selegenev@tmtinvestments.com
|
ZAI Corporate Finance Ltd. NOMAD Peter Trevelyan-Clark/Jamie Spotswood
| +44 20 7060 2220 |
Hybridan LLP Broker Claire Louise Noyce
| +44 20 3764 2341 |
Kinlan Communications David Hothersall
| Tel. +44 20 7638 3435 davidh@kinlan.net |
About TMT Investments Plc
TMT Investments PLC invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has net assets of US$53m and has invested in over 40 companies to date. The company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com