RAM Ram Active

 

TIDMRAM 
 
RNS Number : 8604O 
RAM Investment Group PLC 
13 March 2009 
 

FOR IMMEDIATE RELEASE13 March 2009 
 
 
 
 
RAM INVESTMENT GROUP PLC 
("RAM" or the "Company") 
 
 
RAM INVESTMENT GROUP PLC INVESTS GBP177,500 IN NEW PLANET INVESTMENTS LTD 
("NPI") TO SECURE STAKE IN TRAIN FX LTD, CONVERTIBLE LOAN FOR GBP200,000 
SECURED, LOAN OF GBP200,000 MADE TO VISION MEDIA GROUP AND PLACING OF NEW 
ORDINARY SHARES 
 
 
 
 
Investment in NPI 
 
 
The Board of RAM Investment Group plc ("RAM") announces that it has signed an 
agreement to invest GBP177,500 in New Planet Investments Ltd ("NPI"), a special 
purpose vehicle established to acquire the assets of Train FX Ltd from the 
Vision Media Group plc. This initial investment secures RAM 18.3 % of the NPI's 
issued share capital. 
 
NPI currently has an exclusive arrangement with VMG to acquire 100% of Train TV 
from VMG, with a long stop date of 30th June 2009, for an overall enterprise 
value of between GBP2,100,000 and GBP2,600,000. 
 
 
Train FX Ltd (Train TV registered) has signed contracts with National Express 
and First Capital Connect with the right to install digital TV screens and an 
ambient sound system on their railway carriage fleet. The screens and sound 
system will broadcast passenger journey information, breakfast style news and 
advertising. The technology is also in place for the train operators to access 
back-haul information. 
 
 
For the year ended 31 December 2007 Train TV made a loss of GBP561,612 on 
Turnover of GBP34,169. As at 31 December 2007 it had Net Liabilities of 
GBP1,630,646. 
 
 
RAM has also agreed an option (at RAM's call only) with VMG to acquire the 
remaining issued share capital of NPI, with a long stop date of 30th June 2009, 
in the event that NPI is successful in acquiring the remainder of Train TV from 
VMG. Should RAM exercise this option then the Company expects this to be 
classified as a Reverse Takeover in accordance with AIM Rule 14 and accordingly 
the necessary AIM requirements followed. 
 
 
Executive Chairman Tim Baldwin comments; 
 
 
"Train FX is aiming to obtain long-term contracts with the all train operating 
companies covering the Greater London rail commuter market over ground. This 
represents approximately 800 million passenger train journeys a year. For UK 
advertisers, it is the last bastion of captive broadcasting in mass transit. The 
programme is scheduled to be rolled out on the East Anglia franchise by the 
start of the Olympic Games. It is an investment in which the Board has every 
confidence." 
 
 
Issue of GBP200,000 Convertible Loan 
 
 
The Company announces that it has raised GBP200,000 through the issue of a 
convertible Loan Note to Swandale Ltd. The Company has agreed to pay Swandale 
Ltd a fee of GBP10,000 for the Loan and interest is payable at 12% per annum 
compounded monthly. 
So far as not converted, the principal amount of the Loan Note together with any 
interest due thereon would be redeemed on 20 February 2011 or at the option of 
the Company at any time before such date or at the election of Swandale Ltd 
following the breach by the Company of any conditions set out in the Loan 
Note. The Loan Note is convertible into Ordinary Shares at a price of 4p each in 
the capital of the Company. 
 
 
The proceeds of the Convertible Loan will be used for general working capital 
purposes and to make investments in accordance with the Company's investing 
strategy. 
 
 
 
 
Loan of GBP200,000 made to Vision Media Group Plc ("VMG") 
 
 
The Company announces that it has made a loan of GBP200,000 to VMG. GBP150,000 
has been drawn down. The Loan carries an interest rate of 12% per annum payable 
on redemption in one year in the event that the sale of Train TV to NPI does not 
conclude and in which circumstances the Loan investment would convert into 
shares in Train TV. In the event that the sale of Train TV to NPI concludes 
successfully the interest will be waived on completion of the transaction and 
the Loan would convert into part of the payment of the acquisition costs. 
 
 
 
The Placing 
 
 
The Company has placed 1,025,000 new ordinary shares of 1p each at a price of 4p 
per share to raise GBP41,000 before expenses, with institutional investors on 
behalf of clients. The new Ordinary Shares will, when issued, rank pari passu 
with the existing Ordinary Shares in issue and application will be made for such 
new Ordinary Shares to be admitted to trading on AIM. This is expected to be on 
20 March 2009. The proceeds of this issue, after expenses, will be used for the 
working capital requirements of the Company. 
 
 
 
 
 
 
For further information please call: 
 
 
Tim Baldwin   RAM investment Group plc           020 7518 4337 
 
 
Roland Cornish Beaumont Cornish Limited            0207 628 3396 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IOECKNKBABKDNND 
 

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