TIDMTMT
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 +44(0)1534 281 843
www.tmtinvestments.com 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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