27th Jul 2015 09:42
LONDON (Alliance News) - Ten Alps PLC Monday said it has agreed to make a strategic investment in TV drama production company Chrysalis Vision Ltd, initially investing GBP50,000 in the company for a 12% stake.
Ten Alps will provide GBP200,000 of convertible loan stock to Chrysalis in equal monthly instalments over the next 20 months from August.
The loan notes can be converted into equity at 100 pence per share at any point from January 2016 to the end of 2018.
Ten Alps will retain options to make two further investments on or before the end of July 2018 and the end of December 2018, respectively, in exchange for up to 750,000 new shares in Chrysalis Vision. That would give it a majority shareholding in the company in future.
Chrysalis was set up to develop a "long-form drama series aimed at the UK and global markets".
Chrysalis was established by media entrepreneurs Chris Wright, Luke Johnson, who is a non-executive director at Ten Alps, and Roger Parry, according to the company. It is run by Chief Executive Mick Pilsworth, who helped to create television series Midsomer Murders.
Ten Alps doesn't expect full conversion of the loan notes to give it a majority stake in Chrysalis Vision, meaning it would be treated as an a associate entity for accounting purposes.
"The investment in Chrysalis Vision enables us to extend that range still further with a low-risk entry into the potentially high-margin drama market. We are backing an impressive and proven team and acquiring a new set of skills and ambitions," Ten Alps Chief Executive Mark Wood said in a statement.
Ten Alps shares were up 2.3% at 3.07 pence on Monday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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