17 September 2010
Motive Television MTV Acquisition
Proposed acquisition of approximately 67.7 per cent. of Adecq Digital S.L.
Subscription for £4,750,000 nominal of Convertible Loan Notes and 71,250,000 Subscription Warrants and Admission to trading on AIM
The Board of Motive, ("MTV") the AIM quoted media Investment company specialising in television technology, is pleased to announce the proposed acquisition of Adecq Digital S.L. ("Adecq Digital"), which owns the Bestv® brand. As well as the acquisition, Motive is proposing to raise approximately £4.75 million through a Subscription for £4,750,000 nominal value of Convertible Loan Notes and 71,250,000 Subscription Warrants.
Highlights
• Proposed acquisition of approximately 67.7 per cent. of Adecq Digital S.L. for a total consideration of £1,614,992
• Adecq Digital acquisition offers the Company the opportunity to increase its size, increase its earnings potential and increase its presence in its chosen market
• Conditionally raised £4,750,000 (before expenses) through a Subscription of Convertible Loan Notes and Subscription Warrants
• Funds will be used to grow Adecq Digital, make certain debt repayments and to provide additional working capital for the Enlarged Group
• In June 2009, Adecq Digital moved from research and development to trading
• Adecq is now in advanced negotiations to provide its technology platform for a major European broadcaster. The Board hopes to reach a successful conclusion in the near future
• The Digital Terrestrial Television ("DTT") sector offers many exciting opportunities and the potential for rapid growth due to the mandatory "switch over" from analogue television to digital in most of the 120 countries which are members of the International Telecommunications Union ("ITU") by 2015
• The particular attraction for the Board of the Bestv® technology is that it is available today, in commercial operation and ready to roll out to global markets
Michael Pilsworth, Chairman of the Company, commented: "We have been looking at potential, complementary acquisitions targets for some time now and Adecq Digital was the obvious choice. We already own the global distribution rights for BesTV® (excluding Spain and Italy) and Adecq Digital has strong synergies with our recent acquisition, NXVision Limited. This acquisition further demonstrates the progress we have made in achieving our stated objectives. As the majority owner of the technology rather than simply being a distributor we are well placed to boost our earnings potential.
"We are delighted at the level of support that Motive has received during the subscription. The funds raised will be used to further develop Adecq Digital, to pay off outstanding debts and as additional working capital, leaving the Company in a much more financial stable position. We believe that this acquisition and fund raising will allow the Company to maximize its growth potential and increase shareholder value."
Leonard M Fertig, CEO of Motive, commented: "The Bestv® technology has the potential to revolutionise terrestrial broadcasting by giving DTT operators opportunities to participate in pay television as well as catch-up television on the TV set without need for the Internet. The board of Motive believes that this proposition is very exciting to broadcasters and that it is beginning to gain traction in the market."
ENDS