TIDMTMT
RNS Number : 1499A
TMT Investments PLC
27 March 2012
27 March 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in ThusFresh Inc.
The Board of TMT is pleased to announce the completion of an
investment in ThusFresh, Inc., which is developing "Undrip", a
mobile and web application that filters, organises and sorts the
content that users' friends are sharing on Twitter, Facebook and
other social networks. Undrip is currently in the private beta
phase.
ThusFresh, Inc. ("Undrip") is a Delaware corporation, founded by
experienced entrepreneur Mick Hagen. After Mick's first year at
Princeton University, he dropped out to start Zinch.com, a website
that connects young people with schools, scholarships and graduate
school opportunities. Mick recently sold the company to Chegg. He
was recently named one of the top 100 high-tech entrepreneurs in
Utah and Top 40 business persons under 40 by Utah Business
Magazine. Mick is a regular speaker and panellist at various
industry events, business plan competitions, and other events.
Every semester, he is invited back to Princeton University to share
his experiences in entrepreneurship.
As part of the current US$1.5m financing round, TMT has acquired
892,365 new zero coupon convertible preferred shares in Undrip
representing 7.71% of the company's fully diluted equity capital
(post-transaction) for an aggregate consideration of US$485,000,
assuming a fundraising of US$950,002. Assuming the full US$1.5m is
raised, TMT's fully diluted equity stake in the company will be
7.09%.
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday.
The agreements between the parties include pre-emption rights,
liquidation preferences and other rights and protections in favour
of TMT customary for preferred stock holders. The acquired
preferred shares may be converted at any time into Undrip's common
shares at a 1:1 conversion rate. TMT will have the right to
purchase up to 20% of the total number of Undrip's equity
securities sold in the next equity financing.
According to Mick Hagen, "There are more than 4 billion Facebook
posts and 250 million Tweets shared every single day. Social
networks like Instagram, Tumblr and Pinterest are exploding with
growth. The amount of content and noise coming through our social
streams is painful and frustrating. Undrip has a massive
opportunity to be the app that understands the content, organizes
it, filters it, and delivers it in a rich, simple and compelling
experience. We're super pleased to be partnering with TMT to build
a franchise company that gets global, mass-market consumer
adoption."
TMT realises the problem of excessive content in people's online
and mobile social lives and believes that the founders' vision and
deep understanding of the market will make Undrip a successful
application.
Undrip has not yet published any financial accounts.
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
Kinlan Communications Tel. +44 (0) 20 7638
David Hothersall 3453
davidh@kinlan.net
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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