News blog

Motive Television

• BY: Andrew Hore |
• POSTED: 19/02/2014 |

Motive Television raising more cash is probably the least surprising thing on Aim. 

As soon as MTV issues a trading statement it is rare for a fundraising not to be around the corner and the mention of Tablet TV manages to attract investors. MTV is raising £775,000 at 0.02p a share – the same price at which £1m was raised last September. This takes the number of shares in issue to 33.2bn.

To put the new cash in perspective, the cash outflow from operations in the first half of 2013 was £1.37m. It is unclear just how much the Television Anytime Anywhere digital television technology operations contribute to revenues but it seems safe to assume that a large chunk of the company’s revenues come from the remaining TV production business.

The cash raised will be spent on marketing and PR and doing deals in Europe, Africa and Latin America, as well as more spending on technology development.

More shares have been issued in this placing than the total number in issue at the beginning of 2012. There are 13 times as many shares in issue as there were at the start of 2012.

The share price remains around 0.025p. It is difficult to work out exactly what the share price is because most websites only have prices to two decimal places. While a consolidation would be appreciated MTV is not in a strong enough position to do that without the share price drifting downwards following the consolidation.

MTV joined Aim on 11 May 2005 when it was going to be a TV production company consolidator. It raised £750,000 at 3p a share. The share price has fallen by more than 99% since then and the shares in issue at the time of the flotation are currently worth around £11,000.

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