TIDMTMT
RNS Number : 2343F
TMT Investments PLC
13 June 2012
13 June 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in Wrike, Inc.
The Board of TMT is pleased to announce the completion of an
investment in Wrike, Inc. ("Wrike"). Incorporated in Delaware,Wrike
(www.wrike.com) is an award-winning provider of social project
management and collaboration software that helps both co-located
and distributed teams to get things done together in real time.
Wrike's product vision is based on the innovative "work graph"
model that connects all work-related information in one central hub
in the cloud.
TMT's investment consists of a US$1,000,000 unsecured
convertible promissory note in Wrike (the "Note") on the following
terms:
-- Interest rate - 8% per annum;
-- Term - the Note's maturity date is 12 months from the date of issuance of the Note;
-- Conversion -
a. Any outstanding principal and unpaid accrued interest on the
Note will be automatically converted into Wrike's equity securities
upon the earliest of (i) closing of the next equity financing, or
(ii) change of control of Wrike, in either case at an equity
valuation equal to the lower of (i) 80% of the equity valuation of
Wrike applicable to the next equity financing or change of control,
or (ii) US$20,000,000 for the whole of Wrike's fully diluted common
stock.
b. Unless earlier converted, at maturity date of the Note any
outstanding principal and unpaid accrued interest on the Note will
be automatically converted into Wrike's equity at an equity
valuation equal to $16,000,000 for the whole of Wrike's fully
diluted common stock.
-- Right to participate in the next equity financing - TMT will
have the right to purchase Wrike's equity securities sold in the
next equity financing in addition to TMT's pro-rata entitlement,
subject to the size and terms of the next equity financing.
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday.
As the creative economy develops and remote work expands,
businesses are in great need of productive and cost-efficient
systems to manage their work tasks, projects and teams. For many
knowledge workers, a typical situation is having important
information scattered across hundreds of emails, files and Web
pages. Wrike addresses these challenges by providing a scalable
online collaboration platform that connects tasks, projects,
discussions, documents and other work-related information in one
cloud-based workspace, in which teams of any size can productively
collaborate. Wrike's innovative solution combines robust task and
project management functionality, friendly collaboration features
and powerful integration with email and popular document management
tools. Wrike allows users to bring together as many tasks and
projects as they need and work on them in a scalable environment.
For example, one of Wrike's customers manages over 100,000 tasks,
all within the same workspace.
Wrike's founder and CEO Andrew Filev is the visionary behind the
company's product, which has become an irreplaceable project
management and collaboration solution for thousands of customers.
As a successful software entrepreneur and experienced project
manager, Andrew not only oversees Wrike's business strategy, but
passionately leads the product development. Andrew launched his
first software company at the age of 18 and quickly grew it into a
thriving international business. Andrew's own experience in dealing
with constraints of working in a fast-paced, multi-project
environment inspired his vision for creating a system that could
revolutionize project collaboration.
As more and more businesses trust Wrike's solution to
collaborate on their projects in the cloud, the company has
demonstrated triple-digit revenue growth year-on-year. Wrike's
diversified international customer base includes well-known brands
such as ECCO, Deloitte, Adobe, EMC, Stanford University, and many
others.
In respect of the year ended 31 December 2011, Wrike's unaudited
net operating profit before taxation amounted to US$39,441 and
unaudited net assets as at that date amounted to US$24,327.
TMT believes that, with its outstanding product solution, Wrike
provides a great opportunity to get exposure to the fast-growing
project management and collaboration software market.
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) 207 638 3435
David Hothersall 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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