Motive Television, the 'TV anytime, anywhere' technology company, is to take full control of its intellectual property rights (IPR) by buying out the minority shareholder in its Spanish subsidiary.
The AIM-listed television services provider has informed venture capital firm CCAN 2005 Inversiones Societarias that it has exercised its right to purchase CCAN's ownership in Motive Television SL at a nominal value of €0.10 per share. In total, Motive will pay €70,116 to CCAN. The action was triggered by a notice of merger of CCAN into La Caixa Bank received by Motive last week.
The purchase of these shares, representing 32.3% percent of Motive's Spanish subsidiary, will bring Motive's ownership of Motive Television SL and its Television Anytime technology to 100%.
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The move tidies up the ownership structure of Motive, which had been a complicated one after the completion of the reverse takeover of Adecq Digital SL in 2010. Following that takeover, CCAN had been granted a put option which, if exercised (after the 18-month anniversary of the takeover) would have compelled Motive to pay €2.1m for the 32.3% stake in the Spanish subsidiary. According to Motive's legal advisers in both the UK and Spain, Motive's latest move supersedes the validity of the CCAN Put agreement.
Little wonder that Leonard Fertig, Chief Executive Officer of Motive, said: "The opportunity to acquire the remaining third of our IPR assets for €70,000 is an excellent result for Motive, as this stake was valued at €2.1 million at the time of the reverse takeover of Adecq Digital SL. Additionally, the removal of the Put eliminates the uncertainty regarding the disposition of this stake."
The acquisition of the shares will be financed by the company drawing down funds from the equity line facility of up to £2m provided by the Dutchess Opportunity Cayman Fund.
JH
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