15th Jan 2019 13:27
LONDON (Alliance News) - Matomy Media Group Ltd said Tuesday it has received a third letter of support from shareholders regarding a disagreement with certain shareholders over bond payments.
Shares in Matomy Media were down 8.1% Tuesday at 6.43 pence each.
Matomy said the letters also show support for extending the deadline for shareholders to come to an agreement on bond payments to January 24.
The internet advertising firm said it received letters of support in late December and early January confirming shareholder support over its discussions with certain bondholders.
In February last year, 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%.
Rainmaker Investments GmbH - which holds a 10% stake in Team Internet - said that Matomy had not made a "detailed and clear proposal" regarding the "full immediate payment" of the consideration for its stake.
The bondholders issued a letter to Matomy alleging its "conduct, provision of information and past disclosures" in the dealing were unclear.
The Israeli internet advertising company also said the letter stated the bondholders are entitled to an immediate repayment of all amounts under the bonds, on account of the misconduct.
Matomy rejects these claims. It said "no event has occurred" that constitutes an event of default under the company's bonds and has clarified its compliance with disclosure obligations.
Matomy has outlined a proposed plan for an agreement with both its bondholders and with Rainmaker Investments GmbH, the minority shareholder in the Team Internet AG media company.
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