4 Sep 2009 16:20
For immediate release
4 September 2009
TOP LEVEL DOMAIN HOLDINGS LIMITED
("TLDH" or the "Company")
Acquisition of further interest in DotEco LLC ("Dot Eco")
On 27 May 2009 the Board of Top Level Domain Holdings Limited (AIM: TLDH) announced that it had subscribed for a 10.0 per cent. interest (on a fully diluted basis) in DotEco (www.dotecotld.com) for a cash consideration of US$200,000 (the "Initial Investment"). The Company has agreed today to acquire a further 15 per cent. interest in DotEco for a cash consideration of US$200,000, financed from its current cash resources, following which its interest in DotEco will amount to 25 per cent. (the "Acquisition").
The Internet Corporation for Assigned Names and Numbers ("ICANN") announced its intention to allow qualified parties to apply to own and operate new generic TLDs ("gTLDs"). DotEco, which is based in California, intends to build an environmentally-focused gTLD and entered into an integrated partnership with former US Vice President Al Gore and the Alliance for Climate Protection which supports DotEco's efforts to raise awareness about the dangers of climate change. DotEco intends to submit an application with ICANN for the eco top level domain. The Company expects that the application and approval process could take up to 24 months. As DotEco is a start-up venture it has not to date prepared any financial statements.
When the Company made its Initial Investment, the Board anticipated then the Company's interest in DotEco may well be diluted over time as DotEco raised additional capital in future. While there can be no assurance at this stage that the ICANN auction and application process for new gTLDs will proceed as expected or that DotEco will be successful in its applications, the Board believes that DotEco is well positioned ahead of the gTLD application process and its prospects, if awarded the eco top level domain, are potentially very attractive. In addition, the Board's target minimum equity interest in gTLD applicants is generally 25 per cent. and the Acquisition therefore will enable the Company to achieve its preferred minimum equity interest level before any anticipated equity dilution by DotEco should its application be successful.
The vendor of the further interest in DotEco is Clark Landry, a director of the Company and founder shareholder of DotEco and who, as previously announced, has an interest of 24.87 per cent. fully diluted interest in DotEco. Accordingly, the proposed Acquisition is a related party transaction for the purposes of Rule 13 of the AIM Rules. The Independent Directors of the Company (being David Weill, Guy Elliott and Michael Mendelson), having consulted with Beaumont Cornish Limited, the Company's nominated adviser, unanimously consider the terms of the proposed Acquisition are fair and reasonable insofar as the Company's Shareholders are concerned.
David Weill, Chief Financial Officer said:
"Awareness is now building for the proposed .ECO domain in the international arena and we are pleased to have been able to increase our holding in ECO ahead of the application process formally beginning. We look forward to .ECO remaining at the forefront of the new top level domains expected to be launched in 2010."
Further Information:
Top Level Domain Holdings Limited.
David Weill Tel: +44 (0) 20 7881 0180
Beaumont Cornish Limited
Roland Cornish
Michael Cornish Tel +44 (0) 20 7628 3396
gth media relations
Toby Hall /Christian Pickel Tel: +44 (0) 20 7153 8039/8036
Or visit the group's website at www.tldh.org
ENDS
MMX.L (MMX)