Content Media Corp. to go private

The London-based entertainment company is proposing a share capital restructuring as well as a delisting from the London AIM stock exchange, saying its previous share structure has been an "obstacle" to its growth.
June 14, 2012

London-headquartered global entertainment company Content Media Corporation has proposed a share capital restructuring as well as a delisting from the London AIM stock exchange – moves the company says will place it in a better position for growth.

The company – with offices in Los Angeles, New York and Toronto as well as London – currently has two classes of shareholders. ‘Preference’ shareholders presently rank ahead of ‘Ordinary’ shareholders and also have a redemption repayment of approximately £9.8 million due to them, payable as and when the company is able to.

Under the proposal, Preference shareholders will forgo their preferred rights and the redemption payment in return for 50% of the newly structured Ordinary Share capital, thus removing the £9.8 million liability from the Content Media Corp. balance sheet. Ordinary shareholders will own the other 50% of the share capital.

As for the delisting, the company says its directors have arrived at the conclusion that the “costs and obligations of the AIM listing outweigh the benefits.” The company will offer its small shareholders a chance to exit, if they so wish, via a nil cost dealing facility and provide an arrangement that will allow shareholders to trade shares by private treaty.

“For some time the company and its shareholders have sought a solution to the company’s share structure which we believe has proven an obstacle to the growth of the company’s business and overall equity value,” said Huw Davies, chairman of Content Media Corp. “The directors are pleased to announce this solution which we believe is good news for shareholders and for the company as a whole.”

John Schmidt, CEO of Content added that the proposed changes will “provide the Company with a far better opportunity to grow the Company’s business and we look forward to the prospect of executing on any growth opportunities that arise in the future.”

The proposals are subject to shareholder approval at a meeting to be held on July 5.

The news follows last week’s announcement from Content Media Corporation that it was acquiring 50% of Alex Gibney’s Jigsaw Productions.

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