25 October 2011
Motive Television PLC, the digital television technology, software and services provider, announces that it has conditionally raised £1,020,000 (the "Placing") through the issue of 728,571,429 new ordinary shares in the capital of the Company at a placing price of 0.14 pence per share (the "Placing Shares").
The Placing Shares have been placed with investors on behalf of the Company by XCAP Securities. The Placing is conditional upon admission of the Placing Shares to trading on AIM ("Admission"). The net proceeds of the Placing, amounting to approximately £950,000, will be used for working capital and growth purposes.
As part of the Placing, Professor Bryan Foss, Non-Executive Director, has subscribed for 2,857,142 Placing Shares. Following Admission, Professor Foss will hold 11,231,284 Ordinary Shares in the Company, representing 0.47 per cent. of the Company’s enlarged share capital and total voting rights.
Following the Placing referred to above the Company will have approximately £1,120,000 of cash. The board believes that with the addition of these funds the Company will have sufficient capital to fund its operations until operating cash break-even.
Application will be made for the Placing Shares to be admitted to trading on AIM. Admission is expected to become effective and dealings are expected to commence on AIM on 28 October 2011. Following the issue of the Placing Shares, the Company will have 2,381,120,682 ordinary shares in issue.
The Company has continued to make good progress with its existing and prospective customers. This progress has provided validation of the Motive Anytime Anywhere technology and has shown further proof of the growing acceptance of Motive’s Television Anytime Anywhere platform by the television industry. The Company’s first client, Mediaset, has placed an order for a second tranche of set-top boxes and has ordered new products and features for their Premium On Demand product from Motive. Digiturk, the Company’s second customer, will launch its consumer product shortly and has requested additional features from Motive. Following the signature of the LOI with CME, Motive’s engineering team has completed its initial project work in Prague and the Board expects the implementation at CME to commence on schedule. The Directors are confident that as more new clients are added the sales cycle will shorten, and prospective customers will commit to implementations more quickly.
Progress at Digiturk
The Digiturk project began almost exactly one year ago. Since then, as planned, Motive Television has delivered the components required on the headend and also the libraries needed to deliver the non-linear services on the set top box (“STB”).
On the headend, three installations have been completed along with the in-house installations of the servers at Casablanca and Barcelona. One installation is at Sagemcom at Rueil Malmaison in France which is being used to perform internal end-to-end tests with the STB by Sagemcom.
At Digiturk, a lab system has been set up to test the functionality before service launch and also for testing new features before they are launched. The production system is a replica of the lab system with a 100% redundant chain.
The lab system was installed, tested and accepted in Q2 2011 with the production system installed, tested and accepted in the beginning of Q3 2011. The acceptance tests included interfacing with 3rd party playout and automation systems, multiplexers and a CDN for delivering content over IP.
Internal tests are now ongoing at Sagemcom for testing the key linear & non-linear functionalities on the STB using the libraries provided by Motive Television.
In the coming weeks, Motive Television, Sagemcom and Digiturk plan the first end-to-end tests on-site at Digiturk in Istanbul. In these tests, the key non-linear functionalities are to be assessed – autorecording and PushVoD.
Once successful, the next phase of testing will include IP related functionality – adaptive streaming, PushVoD over IP and PullVoD using the Digiturk portal.
Commenting on the placing and trading update, Leonard M. Fertig, CEO of Motive Television plc, said: “We are pleased with the level of demand that we have received from both existing and new investors in the placing. The addition of these new funds means that Motive now has sufficient capital to fund its operations until operating cash break-even. We continue to make very good progress with our existing customers and remain confident about Motive’s future prospects.”
Motive Television plc
Michael Pilsworth, Chairman
Leonard M. Fertig, CEO
T: +44 20 7025 8425
Merchant Securities (Nominated Adviser)
Simon Clements / Virginia Bull
T: +44 20 7628 2200
XCAP Securities (Broker)
Jon Belliss/ Karen Kelly
T: +44 20 7101 7070
Chris Lane / Alice Coubrough
T: +44 20 7367 5100
Chris Plunkett / Mike Smargiassi
T: +1 212 986 6667
T: +44 7774 860011
Notes to Editors
Motive Television provides digital television technology and services globally, enabling Television Anytime Anywhere. The market is driven by heightened consumer demand coupled with the mandatory switchover from analogue to digital broadcasting that, as mandated by the International Telecommunication Union, will come into full effect by 2015.
Motive Television provides broadcasters and platform operators with new sources of income and business models via its technologies:
Television Anytime is a technology that permits and enables broadcasters and platform operators to offer enhanced broadcasting services without the need for the Internet. Broadcasters can earn additional income through these services, including Catch-Up TV, Virtual Channels, Video-on-Demand and Targeted Advertising. Television Anytime is currently in commercial operation in Italy and successful tests have been carried out in the Czech Republic and Hungary. Patented in Europe.
Television Anywhere is an advanced multi-screen and place-changing television technology that allows a viewer to interact, control and watch their Internet-connected home television from a computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software orientated, does not require an additional box, and can be updated via software upgrades. US patent pending.
Motive’s content division is:
Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.
Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).
More information on Motive Television can be found on its website www.motivetelevision.co.uk