TIDMTMT
RNS Number : 7072K
TMT Investments PLC
24 August 2012
24 August 2012
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in UsingMiles, Inc.
The Board of TMT is pleased to announce the completion of an
investment in UsingMiles Inc. ("UsingMiles"). Incorporated in
Delaware, UsingMiles helps its members keep track of when their
miles or rewards expire, alerts them to special promotional
programmes available and helps them find efficient ways to spend
their rewards through a "one stop" easily accessible service.
UsingMiles currently has over 63,000 members managing over ten and
a half billion miles, points and credits, with an asset value
estimated to be valued higher than US$200 million, on
www.usingmiles.com.
As part of a series A equity financing round, TMT has acquired
1,093,614 preferred shares in UsingMiles for an aggregate
consideration of US$250,000. Assuming the series A equity round is
fully subscribed, TMT's fully diluted equity stake in the company
will be 3.00%.
The UsingMiles service includes a personalized dashboard that
allows users to view a wide range of loyalty and rewards
programmes. "Many of those dashboards contain more than US$10,000
worth of second currencies, and often expiration dates are only a
month or two away," says Jon Nordmark, CEO of UsingMiles. "Those
individual dashboards give UsingMiles unique insights across
multiple loyalty and rewards programmes, enabling UsingMiles to
deliver personalized recommendations to members so that rewards are
not left unused."
Alexander Selegenev, Executive Director of TMT Investments PLC,
commented: "With marketing firm Colloquy estimating that about 33%
of the reward points earned by US consumers worth a total of $16
billion go unused each year, we believe UsingMiles is well
positioned to become a leading universal 'second currency'
management system across many sectors including travel, hotels,
restaurants and retail, as well as other segments. UsingMiles is
quickly expanding the number of partner loyalty programmes with
which it has signed agreements and has an active monetization
programme in place at various levels."
Before establishing UsingMiles, Jon Nordmark founded and for 10
years was CEO of eBags.com, involving a complex fulfilment network
of more than 500 warehouses in the USA, Europe and Japan. eBags was
one of the first five e-retailers to gather consumer-generated
content (product ratings and reviews) to sell products, having
sourced 1.4 million product reviews between 1999 and 2008. eBags
achieved a 34% cumulative annual growth rate over Jon's final eight
years as CEO, and the company has been profitable every year since
2001. eBags raised US$30 million from Technology Crossover
Ventures, Benchmark Capital, Mitsubishi, Amerindo and other
sources. Jon was named Ernst & Young's Rocky Mountain Region
Entrepreneur of the Year(R) in 2003. He graduated Magna Cum Laude
from the University of Colorado.
UsingMiles has been recognized as a RedHerring 100 Finalist for
North America in 2012 and as one of Entrepreneur Magazine's Top 100
Brilliant Companies in 2011. The company is based in Denver,
Colorado.
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 UsingMiles's
common shares at a 1:1 conversion rate.
Definitive agreements for the transaction were entered into, and
the transaction was completed, yesterday. Other investors in the
round include iSherpa Capital (Denver) and Pivotal Investment
Partners (Palo Alto and Denver).
In respect of the year ended 31 December 2011, UsingMiles's
unaudited loss before taxation amounted to US$2,324,000, and
unaudited net assets as that date were US$268,000.
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 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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