In an RNS issued yesterday Vision Media Group (International) plc were yet another AIM listed DOOH business having to resort to various loan agreements – in this instance a new debt facility of GBP 250,000 from a recent new investor in VMG.
Mike Cottman, Executive Chairman of VMG told us “We are extremely pleased to have secured an agreement from a new investor for this loan facility. The extra financing will contribute to the Company’s working capital and ongoing liquidity issues which continue to remain extremely challenging.”
Interestingly though, by way of additional security and as an incentive to agree to the new facility, board member Mike Cottman has agreed to provide the investor with shares in VMG Global Limited (‘VMG Global’), a business which has been established to develop the non-UK VMG product and service offering under licence.
We wrote about rumours of VMG International truly going ‘international’ back in May and it’s most likely that these folks will be setiing up some form of Theme Park offering in the US.
The announcement from VMG also made mention that the new investor will provide free of charge consultative resources to both the Company and VMG Global.
VMG will retain an ongoing royalty payment from VMG Global which is currently 10% of the net income to be derived from the international business – this royalty payment will move to 5% of net income for the period May 2010 to April 2011 and then 2% from May 2011 up until May 2033 when the licence ends.