8th Feb 2016 11:21
LONDON (Alliance News) - Ten Alps PLC, a television and multimedia content producer, on Monday said it has agreed to acquire a "small corporate video and storytelling" business which specialises in making videos for blue-chip corporate organisations.
The acquisition should boost earnings in the first full year following completion, expected by March 31, the company said.
In addition, Ten Alps said it has received a GBP750,000 capital injection from Herald Investment Trust PLC, which owns about 35% of the company.
The money will help Ten Alps in the wake of delays in programme commissioning in its TV division. "As a consequence of this, the company considers it prudent to strengthen its cash reserves, with the proceeds of the loan to be used partly for general working capital requirements and the balance to be used to fund consideration for the acquisition," the company said.
Interest under the terms of the loan will be rolled and charged at an annual rate of 8.0% with a repayment date of June 10, 2016.
Shares in Ten Alps were down 6.0% at 1.41 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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Herald Investment TrustTAL.L