News blog

Motive Television

• BY: Andrew Hore |
• POSTED: 31/05/2013 |

Motive Television has issued even more shares to raise £639,000 at 0.015p a share soon after raising £500,000 at the same share price.

Motive TV is also swapping shares for £36,000 of accrued interest. The cash will help to pay down debt as well as to acquire the rest of the main subsidiary Motive Television SL now that the time consuming legal dispute is over.

Yet another share placing has knocked 12% off the share price. At 0.018p a share, Motive TV’s current share capital is valued at £2.52m.

Motive TV has been able to raise more cash because of its announcement of its new Tablet TV technology using its Television Anytime Anywhere, which enables additional content to be supplied to TV viewers.

In March, £625,000 was raised at 0.015p a share, while last August, Motive TV raised £700,000 at 0.04p a share. This shows how poorly the share price has performed over the past year. Other shares have been issued as part of an equity drawdown, for fees incurred and for deferred consideration. Additional cash has come from the exercising of warrants at 0.01p a share.

To put this in perspective, there were 2.56bn shares in issue at the beginning of 2012 and after the latest share issue there will be 18.48bn. That is an increase of more than 600%.

Over the same period, the share price has fallen from 0.16p to 0.018p – nearly 89%.

Motive TV has issued all these shares even though it has still not published its 2012. Net debt was £3.14m at the end of June 2012 and there is likely to be further substantial operating cash outflows since then. Subsequently, £299,000 of additional convertible loan notes were issued to cover interest on convertibles for 2012.

The cash raised will help to offset this cash outflow and help to reduce debt levels.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf