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Statement re Investment

9 Jun 2011 11:33

RNS Number : 1604I
TMT Investments PLC
09 June 2011
 



TMT INVESTMENTS PLC

("TMT" or the "Company")

 

Investment in Ninua, Inc.

 

The Board of TMT is pleased to announce, as its first investment, a participation in Ninua, Inc., a rapidly growing developer of social internet application software in the field of news, blogs, and social media ("Ninua").

 

TMT's investment consists of a US$300,000 unsecured convertible promissory note in Ninua, Inc.(the "Note") on the following terms:

 

Interest rate - 5% per annum;

Conversion rights - the outstanding principal of the Note, together with any unpaid accrued interest, will be automatically converted into Ninua's equity securities upon the closing of the next equity financing or on a change of control of Ninua, at the equity valuation equal to the lowest of (i) 80% of the equity valuation of Ninua applicable to the next equity financing or change of control, or (ii) US$5,000,000;

Repayment - any unconverted part of the Note is repayable at any time at the holder's option after 18 months

 

Ninua is a privately owned, early stage company incorporated in Delaware, USA, engaged in building social internet application software in the field of news, blogs, and social media. The company's NetworkedBlogs is the largest blog and news application on Facebook. It helps bloggers grow their readership and syndicate their content to Facebook and Twitter, while assisting everyone to discover and follow the news sources they like. NetworkedBlogs is the biggest news reader on Facebook advertising 500,000 blogs and serving over 1.7 million active users around the world.

 

Prior to TMT's investment, Ninua raised US$125,000 from well-known Silicon Valley investors Dave McClure, 500 startups, and Facebook Fund.

Ninua will apply the new funds to hiring new staff and further developing its products and operations.

 

TMT and Ninua have entered into an additional agreement, under which TMT has the right to purchase, concurrently with a conversion of the Note, up to twenty (20%) percent of the total number of equity securities sold in the next equity financing.

 

Pursuant to the agreement between TMT and its US consultant, the Company will have an obligation to cede 3% of its holding of the Note or any subsequently converted equity securities to the consultant.

9 June 2011

 

For further information contact:

 

TMT INVESTMENTS PLC

Mr. Alexander Selegenev

www.tmtinvestments.com

 

+44(0)1534 281 843

alexander.selegenev@tmtinvestments.com

ZAI Corporate Finance Ltd

NOMAD and Broker

Marc Cramsie/Irina Lomova

020 7060 2220

 

 

 

About TMT Investments

 

The Investment Policy & Strategy

The Company's objective is to generate an attractive rate of return for Shareholders, predominantly through capital appreciation, by taking advantage of opportunities to invest in the TMT Sector. The Company aims to provide equity and equity-related investment capital, such as convertible loans, to private companies which are seeking capital for growth and development, consolidation or acquisition, or as a pre-IPO financing.

 

In addition, the Company intends to invest in publicly traded equities which have securities listed on a stock exchange or over-the-counter market. These investments may be in combination with additional debt or equity-related financing, and in appropriate circumstances in collaboration with other value added financial and/or strategic investors.

 

The Company is not geographically restricted in terms of where it will consider making investments. It will consider any geographical area, to the extent that the investment fits within the Company's investment criteria. The Directors and Consultants have expertise in emerging markets and, in particular, in Russia and the Commonwealth of Independent States. The Company will not be subject to any borrowing or leveraging limits.

 

Private Companies

The Company will target small and mid-sized companies and will seek to secure at least blocking stakes and board representation, where it considers that the Company and/or an investee company would benefit from such an appointment. The Company will consider making equity investments in lower than blocking stakes only where it sees ways to increase the stakes to blocking or controlling stakes at a later date. Each investment is expected to be at least US$250,000.

 

The investments targeted by the Company will aim to support rapidly-growing private companies to increase market share and achieve long-term shareholder value. It is envisaged that if the Company invested in a private company prior to that company listing on a stock market, the Company would retain a part of its investment in the listed entity going forward. The Company intends to work closely with the management of each investee company to create value by focusing on driving growth through revenue creation, margin enhancement and extracting cost efficiencies, as well as implementing appropriate capital structures to enhance returns.

 

Public Companies

When investing in public equities, the Company will seek to select companies with a dominant market share or strong growth potential in their respective segments. No restrictions will be placed on the size of public companies in which the Company may make an investment. The Directors intend to make investments in companies or businesses with attractive valuation, growth potential, with competent and motivated management, which enjoy brand recognition, have scalable business models, have strong relationships with customers and have in place transparent accounting policies.

 

Realisation of Returns

The Directors will, when appropriate, consider how best to realise value for Shareholders whether through a trade sale, flotation or secondary refinancing of the investee companies. The proposed exit route will form a key consideration of the initial investment analysis.

 

The Company expects to derive returns on investments principally through long-term capital gains and/or the payment of dividends by investees. The primary ways in which the Company expects to realise these returns include: (a) the sale or merger of a company; (b) the sale of securities of a company by means of public or private offerings; and (c) the disposal of public equity investments through the stock exchanges on which they are listed.

 

For private investee companies the Company believes that its typical investment holding period should provide sufficient time for investee companies to adequately benefit from the capital and operational improvements resulting from the Company's investment. The targeted holding period shall be reviewed on a regular basis by the Company, but it is expected that this will typically be between two to four years. For public equities the Company's objective is to maximise capital appreciation. Following the acquisition, the Company will continue to conduct extensive research and monitoring of the investment. Importance will be placed on the timing of any disposal which will follow a thorough review of market conditions and those reports and sources that are available to investors. Should the Company consider that the capital appreciation of a particular public equity investment has reached its peak or is likely to or has begun to decline, then the Company will consider the sale of that investment.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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