Ten Alps readies reverse acquisition deal
Ten Alps, the TV production, publishing and online communications business co-founded by Bob Geldof, has revealed advanced negotiations over a possible reverse take-over.
The company has confirmed that alongside the acquisition, it is also considering equity fundraising and restructure of its debt due to the value of its shares falling below their nominal value. Shares will be placed under a Letter of Subscription which was filed in December 2014.
Under the Letter of Subscription, Ten Alps directors Peter Bertram, Mark Wood and Tim Hoare subscribed for £50,000 and Nitil Patel for £20,000, which the company said would allow it to “strengthen the business and to give it greater flexibility to pursue growth opportunities.”
This subscription is set to be incorporated within the acquisition process and all associated fundraising, and has been extended until 31 August 2015.
Ahead of the acquisition being finalised, trading of the company’s shares on AIM will be also suspended.
“Whilst discussions in relation to the Acquisition are at an advanced stage, there can be no certainty that the proposed acquisition will proceed. The Board will make further announcements in due course,” the company’s statement on the matter concluded.
Last year, Ten Alps saw group revenue fall to £10.17m (down from £11.71m in 2013) while operating losses increased by £200,000 during the same period to £0.73m.
In December last year, Wood was hired as the company’s new chief executive, having previous served as a non-executive director since July.