News blog

Sports Stars Media / Stallion Resources

• BY: Andrew Hore |
• POSTED: 10/04/2014 |

It has been a mixed week for Jose Mourinho with Chelsea progressing to the semi-finals of the Champions League but his cartoon series failing to take off as hoped.

Mourinho and the Special Ones is a cartoon series with trading cards and a social game. Mourinho’s image rights were set to earn 20% of gross revenue, until the total amount paid reaches €1m; 18% of gross revenues, if between €1m but less than €2m has been paid and and then 15% of gross revenues, once more than €2m has been paid. A minimum guarantee of €200,000 has already been paid and the company’s total revenues are less than that. The 15 year licence agreement can be ended if less than €500,000 is paid by February 2018.

In 2013, Sports Stars Media made a loss of €578,000 on revenues of €82,000. There was a further loss of €226,000 in the subsequent two months. There is just short of €77,000 left in the bank.

There has been more positive news about the initial take up of The Game by Ronaldo but the company does not have the cash to increase marketing. There is little chance of raising the cash from investors at the moment although overseas investors are interested in investing in an unquoted company. This is why the business is being sold and the company turned into a shell. The share price has fallen by two-thirds to 0.13p.

Golden Rays Ventures has been set up by a consortium of existing shareholders of the company. Golden Rays is paying £1 for the business and could pay an additional £636,000 if certain trigger events happen. Golden Rays will also take on shareholder loans of £215,000.

That additional payment less costs would then be paid to the shareholders on the register on 9 May. That could be equal to 0.2p a share.

A share issue will raise £300,000 at 0.06p a share and this will more than double the shares in issue. One warrant exercisable at the placing price will be issued for every three shares acquired. This share issue will be completed after the general meeting to gain shareholder approval of the proposals, which will be held on 9 May. Transaction costs will be £77,000.

The consortium buying the animations and games business will sell their existing stake to the new shareholders for £1, which reduces the effective cost to the investors of 0.04p a share. Berwick Capital will be issued with 30m warrants in return for services supplied.

Any existing shareholder who wants to sell their shares for 0.06p can do so through Peterhouse.

Cameron Pearce and David Ajemian are joining the board as directors. They will each own 6.3% of the enlarged share capital. Pearce is a director of former shell CEB Resources, which has already secured two deals less than six months after becoming a shell. Pearce will also receive 30m warrants.

The company will change its name to Stallion Resources and is seeking acquisitions in the natural resources and energy sector.

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