22nd Dec 2015 11:26
LONDON (Alliance News) - Parallel Media Group PLC, an event marketing and media agency, on Tuesday said it has borrowed more money from Chairman David Ciclitira.
Ciclitira, and Parallel Contemporary Art Ltd, a company under his control, have lent a further GBP129,000 to Parallel Media, which now owes a total of GBP826,384 to the chairman.
"The loans have been made to meet contractual obligations of PMG on a short term basis and as yet there are no formal terms of these loans," Parallel Media said.
Although a related party transaction under stock exchange rules, the provision of the loan has been deemed "fair and reasonable" to shareholders. That conclusion was reached by Parallel Media's independent directors, being Tim Sturm and Ranjit Murugason, who consulted with Sanlam Securities UK, the company's nominated adviser on London's AIM junior market.
In addition, Parallel Media said its music division, through its PCM joint venture, has agreed a legally binding deal with Team Rock Ltd under which Parallel Contemporary Music International Ltd will act as TeamRock's independent, commercial representative in Greater Asia and South Africa for negotiations in relation to the Classic Rock Roll of Honour and associated radio, licensing and merchandise rights.
Revenue generated in accordance with the agreement is expected to exceed the approved operating costs and value-added tax, the company said.
TeamRock is majority owned by funds managed by Harwood Capital LLP, which also own 28.23% of Parallel Media Group. Tim Sturm, non-executive director at Parallel Media Group, is a partner of Harwood Capital LLP and a non-executive director of TeamRock.
Shares in Parallel Media Group were up 23% to 11.05 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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