16 Oct 2012 11:41
16 October 2012
Cellcast plc
("Cellcast", or the "Company")
Update on Cellcast Asia Holdings
As announced by the Company on 30 September 2011 and 14 October 2011 respectively, following an additional capital raise by Cellcast Interactive India Private Limited ("Cellcast India") and partial sale of Cellcast's shareholding in Cellcast Asia Holdings Limited ("CAH"), the Company's ownership in Cellcast India was reduced to 12%. Subsequent to this date, Cellcast India's financial position deteriorated as the effects of new Indian regulations reducing premium mobile tariffs for key applications took a toll on Cellcast India's margins.
Consequently, as previously announced, Cellcast India delayed payments due to the Company under a software licensing agreement, entered into in October 2011.
As a result of the above, a decision was reached by the Board of Cellcast to negotiate a complete exit of its investment in Cellcast India, in return for a partial settlement of the sum overdue under the software licencing agreement. This has now been concluded to the reasonable satisfaction of all parties involved in Cellcast India and consequently the Company no longer has any interest in CAH or Cellcast India.
For further information:
Cellcast plc | |
Andrew Wilson, CEO | Tel: +44 (0) 203 376 9420 |
andrew@cellcast.tv | www.cellcast.tv |
Allenby Capital Limited | |
Nick Naylor/James Reeve | Tel: +44 (0) 20 3328 5656 |