3rd Nov 2015 16:38
LONDON (Alliance News) - Internet television products company PeerTV PLC on Tuesday said it is undertaking a review of all of its operations after its subsidiary failed to secure approval at a meeting to restructure its loan notes.
On Monday, PeerTV said 58% of the votes cast by the secured loan note holders of Digitek were in favour of the proposed restructuring of its loan notes, but it needed a minimum of 75% for the proposal to pass.
Peer TV had begun preliminary discussions for a debt-to-equity conversion with key loan note holders of Digitek back in early October, but had warned the talks were at "an early stage" at the time and issued no guarantee a deal would be struck.
Digitek SMT Assemblies is a subsidiary of Digitek Holdings Ltd, in which PeerTV holds a 64.1% stake. Digitek assembles electronics products and components for companies in the telecommunications industries.
Following that, PeerTV on Tuesday said it is "no longer going to fund the operations of Digitek" and is undertaking a review of all of its operations. Although it will stop funding Digitek, it said it remains committed to the television-over-the-internet business.
"The board believe that there is an exciting opportunity in relation to the group's joint venture with Speech Modules and that a product will be developed and ready to market in the next six to nine months," said PeerTV.
In a separate statement later Tuesday, PeerTV said it has issued 428,709 shares to YA Global Master SPV at a price of 13.8 pence per share after YA Global converted GBP58,968 plus a small amount of accrued interest under the convertible loan note facility signed back in February.
In addition to those shares, PeerTV has also issued a further 227,273 shares at 22.0p a share to CSS Alkpha (BVI) Ltd as a GBP50,000 payment toward a revolving credit facility which had a balance of GBP99,996 prior to the share issuance, meaning this should have dropped to around GBP49,996.
The company also has issued another 45,455 shares at 22.0p to Cedric Littman as a part repayment of a loan advanced in 2012 to the company, it said.
PeerTV shares were down 26% to 0.013 pence per share at the close Tuesday.
Also Tuesday, the company said all the resolutions tabled at its recent general meeting were passed.
As a result of the resolutions passing, Kavi Dhana and Leon Hogan have both been appointed to the board.
"I am glad that the resolutions have been passed addressing the immediate short term needs of the company and welcome the supportive input of the shareholders to the future of the group," said PeerTV Chairman Eitan Yanuv.
By Sam Unsted; [email protected]; @SamUAtAlliance
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