24th Jan 2019 13:43
LONDON (Alliance News) - Matomy Media Group Ltd clarified Thursday that any extension of the series A bonds being issued to cover payments to the company's bondholders will be available to all eligible existing and potential investors.
Shares in Matomy were down 13% Thursday at 6.33 pence each.
Matomy said Wednesday key shareholders have committed to invest up to USD2 million through the purchase of series A bonds, at market price.
The commitment was made in an updated proposal that will be put to bondholders to vote on.
The updated proposal comes after months of back and forth with Rainmaker Investments GmbH, who own 10% in Team Internet with Matomy controlling the rest.
The internet advertising firm also noted Thursday that any proposal made by the bondholders would be done so without the "prior approval, consent or support" of Matomy.
Matomy's plan said any demand made by any individual bondholder to vote on immediate repayment of the bonds would have "severe implications" and will not be supported by Matomy.
The company said bondholders not voting for Matomy's proposal in the face of no alternative "lacks good faith" and "may mislead" bondholders who have "not had an opportunity to weigh the alternatives".
On January 9, a majority of the bondholders rejected Matomy's repayment plan which included undertaking USD13 million of fund raising on the London Stock Exchange. Matomy, later the same day, said it has received a fourth letter of support from shareholders over its repayment plan.
In February, Matomy raised USD30.0 million through the issue of convertible bonds in order to fund a further acquisition of a 10% stake in Team Internet, taking its stake to 90%. The remaining stake is held by Rainmaker.
Matomy failed to pay the amount due to Rainmaker on November 30 for 10% of Team Internet, triggering Rainmaker's right to repurchase some or all of the Matomy's shares in Team Internet at 60% of their original price.
Matomy long claimed it did not owe Rainmaker an immediate repayment of all amounts under the bonds, but has also been seeking to revise the terms of its outstanding bonds.
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