3rd Nov 2015 15:24
LONDON (Alliance News) - Internet television products company PeerTV PLC on Tuesday said it is undertaking a review of all of its operations after its subsidiary failed to secure approval at a meeting to restructure its loan notes.
PeerTV shares were down 13% to 0.0152 pence per share on Tuesday afternoon.
On Monday, PeerTV said 58% of the votes cast by the secured loan note holders of Digitek were in favour of the proposed restructuring of its loan notes, but it needed a minimum of 75% for the proposal to pass.
Peer TV had begun preliminary discussions for a debt-to-equity conversion with key loan note holders of Digitek back in early October, but had warned the talks were at "an early stage" at the time and issued no guarantee a deal would be struck.
Digitek SMT Assemblies is a subsidiary of Digitek Holdings Ltd, in which PeerTV holds a 64.1% stake. Digitek assembles electronics products and components for companies in the telecommunications industries.
Following that, PeerTV on Tuesday said it is "no longer going to fund the operations of Digitek" and is undertaking a review of all of its operations. Although it will stop funding Digitek, it said it remains committed to the television-over-the-internet business.
"The board believe that there is an exciting opportunity in relation to the group's joint venture with Speech Modules and that a product will be developed and ready to market in the next six to nine months," said PeerTV.
Earlier Tuesday, the company said all the resolutions tabled at its recent general meeting were passed.
As a result of the resolutions passing, Kavi Dhana and Leon Hogan have both been appointed to the board.
"I am glad that the resolutions have been passed addressing the immediate short term needs of the company and welcome the supportive input of the shareholders to the future of the group," said PeerTV Chairman Eitan Yanuv.
By Sam Unsted; [email protected]; @SamUAtAlliance
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