16th Apr 2015 12:50
LONDON (Alliance News) - PeerTV PLC Thursday revealed a deal to cooperate with Speech Modules Holdings Ltd, which is listed on the Tel Aviv Stock Exchange, in a deal that will see the two companies issue each other with new shares valued at GBP200,000.
The deal means that PeerTV will have exclusive rights in all countries outside of Israel to market software and hardware products and services based on Speech Modules' technology.
PeerTV will issue Speech Modules with 29.4 million shares at 0.68 pence per share, equivalent to a 15.4% stake in the company, while Speech Modules will issue Peer with 7.3 million shares at NIS0.16 per share. PeerTV will therefore have a 15.66% stake in Speech Modules and be able to appoint a director to Speech Modules' board.
Speech Modules could move to sell the shares issued to it by PeerTV, although there will be restrictions in place to prevent more than a quarter of the shares being sold in the space of one month.
"It is expected that in order to finance the development activities that it is committed to undertake under the agreement SML may well decide to sell their shares in PeerTV in the market. However, under the terms of the agreement SML has undertaken not to sell any more than 25% (GBP50,000 value) of their shares in any one calendar month from the date of issue," PeerTV said.
The exclusivity deal will last for a minimum of five years, according to the statement, with PeerTV appointing Speech Modules as its exclusive provider of automatic speech recognition technology. The license is set to be extended automatically after the five years is up, depending on whether sales targets are met.
"Development of advanced remote control units with automatic speech recognition to be used in home entertainment systems, including TV, audio and games, which was the subject of the first cooperation agreement with SML, announced in January 2015, is proceeding as planned and PeerTV expects to start presenting that new product to customers later in Q2 2015," the company said.
PeerTV shares were down 1.5% at 0.714 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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