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Share Placing

16 Aug 2012 07:00

RNS Number : 1208K
Motive Television PLC
16 August 2012
 



 

16 August 2012

 

Motive Television PLC

 

("Motive", "the Company" or "the Group")

 

Share Placing

 

£700k raised to fund future growth

 

Motive Television PLC (AIM: MTV.LN), the digital television technology, software and services provider announces that it has raised £705,000 by way of a share placing ("Placing") through XCAP Securities plc pursuant to which 1,762,500,000 new ordinary shares of 0.01p each in the Company ("Ordinary Shares") will be issued at 0.04 pence each ("Placing Shares"). The proceeds of the Placing will be used for business and product development and as working capital. In addition to the issue of shares, Placees have been granted warrants ("Warrants") to subscribe for a further 881,250,000 Ordinary Shares at 0.04 pence per Ordinary Share within twelve months of admission of the Placing Shares to trading on AIM.

 

Background to the Placing

 

On 2 July 2012 the Company signed a five year contract with CME subsidiary CET 21 spol. s r.o. ("CME") to provide its television anytime anywhere technology platform to support the anticipated launch of a new television service. This deal with one of Europe's leading media and entertainment companies, demonstrates that the Company's new business model, featuring recurring revenues, can find market acceptance and sets the stage for many more such implementations over the coming months and years. However, the extended negotiation process with CME which concluded with the signing of the contract as system integrator at the end of June 2012 has stretched the Company's cash resources. In addition, the significant delay in the market launch of Digiturk's new services has also delayed the receipt of staged payments to the Company.

 

However, with the Digiturk launch to consumers now imminent next month and with the CME contract now signed and Motive engineers working in Prague, the Directors are confident that the Company's revenues, cash position and gross profit margins will greatly improve in the second half of the financial year.

 

The Placing is conditional upon admission of the Placing Shares to trading on AIM. Application has been made for the Placing Shares to be admitted to trading on AIM. Admission and trading in the new shares are expected to commence on 21 August 2012. On admission of the 1,762,500,000 Placing Shares, the Company will have 4,907,845,353 Ordinary Shares in issue in total.

 

The Directors of Motive have undertaken to acquire an aggregate of £25,000 worth of new Ordinary Shares as soon as they are permitted to do so following the end of the Close Period, at the market price at the time.

 

Michael Pilsworth, Chairman, commented:

 

"Today's fund raising demonstrates the ongoing support by investors in our business. Our strong newsflow this year is the result of the progress being made in opening new customer groups for our products. More importantly, delays to income flows are coming to an end and as mentioned above, the Company's revenues, cash position and gross profit margins will greatly improve in the second half of the financial year."

 

 

Enquiries:

 

Motive Television plc

Michael Pilsworth, Chairman

Leonard M. Fertig, CEO

 

 

 

T: +44 20 7025 8425

Merchant Securities (Nominated Adviser)

Simon Clements / Virginia Bull

 

T: +44 20 7628 2200

XCAP Securities (Joint Broker)

Jon Belliss

 

T: +44 20 7101 7070

Financial PR

Cubitt Consulting

Nicholas Nelson / Madeline Douglas/Cebuan Bliss

 

 

T: +44 20 7367 5100

Brainerd Communicators

Chris Plunkett / Mike Smargiassi

 

T: +1 212 986 6667

Media PR

Gerry Buckland

T: +44 7774 860011

 

 

 

Notes to Editors

 

Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere™. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.

 

Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly-valued services to viewers that generate additional income and retain existing subscribers, comprising:

 

Television Anytime. A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services, include, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Television Anytime is currently in commercial operation in Europe both in digital terrestrial (DTT) and soon in satellite (DTH) environments. Patented in Spain and patent pending in the EU.

 

Television Anywhere. An advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software-based and can be updated via software upgrades on existing STB. US patent pending.

 

Motive's content division is:

 

Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

 

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).

 

http://www.motivetelevision.co.uk 

 

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