TIDMTMT
RNS Number : 7597S
TMT Investments PLC
25 November 2011
25 November 2011
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in Tracks Media, Inc.
The Board of TMT is pleased to announce the completion of an
investment in Tracks Media, Inc. ("Tracks"), a rapidly growing
mobile social network headquartered in New York City, NY.
TMT's investment consists of a US$436,500 unsecured convertible
promissory note in Tracks (the "Note") on the following terms:
0 Interest rate - 5% per annum;
0 Term - 24 months from the date of issuance of the Note;
0 Conversion - the outstanding principal and unpaid accrued
interest of the Note will be automatically converted into Tracks's
equity securities upon the earliest of (i) closing of the next
equity financing, or (ii) a change of control of Tracks, in either
case at an equity valuation equal to the lowest of (i) 85% of the
equity valuation of Tracks applicable to the next equity financing
or change of control, or (ii) US$4,500,000;
0 Right to participate in the next equity financing - TMT will
have the right to purchase up to thirty (30%) percent of the total
number of Tracks's equity securities sold in the next equity
financing.
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday.
Incorporated in October 2010, Tracks is a mobile social
networking platform that enables users to effortlessly make social
photo stories around real world experiences. The company has
pioneered the concept of a 'track', a social photo story that
captures real-world experiences. 'Tracks' can be geo, temporal or
last forever. Each track is a living social network based on
thematic experiences in the real world. Tracks are framed around
rich media and made over time and across locations. This
lightweight concept lets users map fluid real world networks. The
company has over 10,000 social networks under management.
The rise of the smartphone has led to an explosion of digital
photos as people are now walking around with an always-connected
camera in their pockets. The ubiquitous camera phone has enabled
anyone to create high quality digital media. In 2011, the number of
camera phones is expected to surpass 1 billion and exceed the
number of all cameras ever produced. Billions of photos are
captured on smartphones daily. Tracks has developed one of the most
innovative and elegant solutions to attacking the booming market
for mobile photos. Tracks is the first mobile software solution
that enables groups of users to make photo stories together,
allowing the explosion of mobile content to be easily curated by
themes and shared with those that are most relevant.
Tracks is led by CEO Vic Singh, a two-time entrepreneur in the
mobile software space. Previously, Vic co-founded NearVerse, a
location based mobile start-up where he launched LoKast, a media
sharing application that he grew to over 200,000 users. Vic was
previously a venture capitalist at RRE Ventures and holds an MBA
from Columbia Business School and a BSE from the University of
Pennsylvania. Tracks is incubated by K2 media Labs, a leading
technology incubator in New York City. K2 is led by Daniel Klaus,
founder of Music Nation and Kevin Wendle, founder of CNET, Fox
Broadcasting and E! Online.
In respect of the year ended 31 December 2010, Tracks's
unaudited loss before taxation amounted to $201,756, and unaudited
net assets as at that date amounted to $167,179.
TMT's investment in Tracks is in line with the Company's
strategy to increase exposure to the sizable and fast-growing
mobile, photo and social networking segments. TMT believes that,
with its innovative "network of social networks" platform, Tracks
is well positioned to become a leading player in the sector.
25 November 2011
For further information contact:
TMT INVESTMENTS PLC +44(0)1534 281 843
Mr. Alexander Selegenev alexander.selegenev@tmtinvestments.com
www.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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