30 May 2014 07:01
Cellcast Plc
("Cellcast", the "Company" or the "Group")
Investment in joint venture, director role change and director declaration
Investment in joint venture
The Company's wholly owned subsidiary, Cellcast UK Ltd ("Cellcast UK"), has today entered into a joint venture (the "Joint Venture") whereby it has invested in Euro TV SA ("Euro TV"), a company incorporated in the British Virgin Islands. Under the Joint Venture Cellcast UK has invested £1 million for a 49% equity interest in Euro TV. Euro TV is a joint venture between Cellcast UK and the owners of the remaining 51%, being the principles of the Atlas Group of Companies (the "JV Partners"). The JV Partners have agreed to invest a further £1 million into Euro TV. Andrew Wilson and Emmanuelle Guicharnaud, Directors of Cellcast, will join the board of Euro TV. Cellcast UK's investment has been made utilising the Group's existing cash resources. Euro TV is focused on the development of a multi platform gaming business using certain intellectual property and other proprietary rights and technologies contributed to the venture by the JV Partners. It will also utilise Cellcast's experience in broadcasting, as well as the Company's production facilities. Euro TV will use the proceeds of the investments for further product and service development and subsequently to acquire broadcast airtime and purchase internet and mobile traffic, as well as for general working capital purposes.
The Joint Venture constitutes a related party transaction under the AIM Rules for Companies, as the JV Partners control the Atlas Group of Companies, which owns 11.15% of Cellcast. The Directors of Cellcast, having consulted with the Company's nominated adviser, Allenby Capital, consider the terms of the Joint Venture to be fair and reasonable insofar as the Company's shareholders are concerned.
Director role change
The Company announces that Bertrand Folliet has stepped down as Executive Director with immediate effect. Mr Folliet will remain on the Board of Cellcast as a non-executive Director.
Director declaration
The Board of Cellcast has been advised the Green Symbol Limited was placed into compulsory liquidation in January 2009 whilst Mike Neville, Non-Executive Director of Cellcast, was a director.
For further information:
Cellcast PLC | |
Andrew Wilson, CEO andrew@cellcast.tv
| Tel: +44 (0) 203 376 9420 www.cellcast.tv
|
Allenby Capital Limited | |
Nick Naylor/James Reeve | Tel: +44 (0) 203 328 5656 |