18th May 2015 15:14
LONDON (Alliance News) - PeerTV PLC Monday said it has issued, in aggregate, just under 83.4 million shares in the company in connection with a "significant turnaround strategy" for its subsidiary which has been under-performing since 2011.
The company said the subsidiary, PeerTV Ltd, has been "disappointing" since September 2011. Although the company has upgraded its Set Top Box product to the Android operating system and added a range of important features to try to turn things around, it said it "has not been successful in achieving sales volumes or broadening its customer base in a substantial way".
"The company is now committed to a significant turnaround strategy under a plan drawn up by the new chief executive of PeerTV Ltd, Wes Wilcox," said PeerTV.
The company said Yorkville Advisors has agreed to vary the terms of the company's standby equity distribution agreement, so the subsidiary can drawdown additional funds to implement its new strategy.
"The company is now issuing the first new ordinary shares in connection with this arrangement. The directors are of course aware of the significant dilution which has taken place during the past ten months in particular and fully understand the views of the shareholders. However, the new issues of ordinary shares are being made to provide the business with the working capital it needs to build shareholder value," said the company in a statement.
PeerTV did not release any details concerning the new turnaround strategy.
The company said its balance sheet is also being strengthened by issuing shares to settle outstanding liabilities.
Just under 38.0 million shares have been issued to YA Global SPV Ltd at a price of 0.3598 pence, representing a further GBP130,000 drawdown from a standby equity distribution agreement.
A further 10.0 million shares have been issued to YA Global at 0.3314 pence, representing a conversion of principle of GBP31,577 and to pay interest accrued under the convertible loan note facility announced in February.
Another 18.0 million shares have been issued as part-repayment of loans due from PeerTV's subsidiaries at a price of 0.40 pence per share to repay liabilities totalling GBP72,000.
Over 13.3 million shares have been issued at 0.45 pence per share to settle a claim worth ILS360,000 by a former customer of PeerTV Ltd in regards to products that were ordered in 2010.
Just under 4.1 million shares were issued at 0.45 pence per share to two individual parties in settlement for fees and other liabilities due by the company and its subsidiaries.
PeerTV shares were down 18% to 0.330 pence per share late Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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