22nd May 2009 14:28
The Mission Marketing Group plc
Rescheduling of certain Group liabilities and Issue of Equity
22 May 2009
The Mission Marketing Group plc (AIM: TMMG, "the Group"), the national marketing communications and advertising group, announces today that the Group has finalised the re-negotiation of the repayment profile and terms of the outstanding acquisition obligations and the repayment of bank debt. The Directors believe that this will adequately address the balance of repayments of liabilities within the Group and will ensure appropriate working capital is available for the Group going forward.
Consistent with the original terms of the acquisitions certain acquisition contingent payments are due to the vendors of Bray Leino and PCM. The Group is therefore today issuing equity in satisfaction of £1,616,408 which is due as additional consideration in shares as follows:
In respect of Bray Leino 3,703,704 ordinary shares at 40.5 pence per share (representing the average middle market closing price for the ordinary shares for the last 20 days); and
In respect of PCM 310,422 ordinary shares at 37.5 pence per share (representing the average middle market closing price for the ordinary shares for the last 5 days).
In the report and accounts for the year ended 31 December 2008 it was assumed that £2.5m of shares would be issued in satisfaction of the Bray Leino additional consideration liability, however it has been agreed that of that sum £1m would be issued in additional consideration loan notes instead.
The Directors now estimate that the liability for future payments that may be due in satisfaction of additional purchase consideration payable in acquisition loan notes and acquisition contingent payments has reduced by approximately £900,000.
The costs of re-negotiating the Group's liabilities include a £1m fee due to the Group's banks payable over a three year period, which may be reduced to £790,000 if certain targets are met.
Application will be made for the 4,014,126 new ordinary shares to be admitted to trading on AIM and dealings are expected to commence on 29 May 2009. The total number of ordinary shares in issue following the placing and therefore the total number of voting rights will be 39,590,954.
Iain Ferguson, Chief Executive Officer, commented: "We delighted with this successful outcome. This now provides a strong platform from which to continue to develop the business going forward."
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Iain Ferguson, Chief ExecutiveThe Mission Marketing Group plc |
020 7395 7575 |
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Tim Alderson, Chief Financial Officer The Mission Marketing Group plc |
020 7395 7572 |
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Charles Palmer/Nicola Biles Financial Dynamics |
020 7831 3113 |
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Mark Percy/Sarah JacobsSeymour Pierce Limited |
020 7107 8000 |
www.themission.co.uk
themission® is a national marketing communications and advertising group with 12 offices across the UK. The Group specialises in providing national and international clients with award winning marketing, advertising and business communications. Group members include April-Six, Bray Leino, Big Communications, Fuse Digital, thinkBDW, Story UK and RLA. themission® employs over 620 staff nationally and is listed on AIM (TMMG).
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