Investment in KitApps, Inc.

RNS Number : 1067J

TMT Investments PLC

11 July 2013

 

11 July 2013

TMT INVESTMENTS PLC

("TMT" or the "Company")

Investment in KitApps, Inc.

TMT Investments PLC, which invests in high-growth, internet-based companies across a variety of sectors, is pleased to announce the completion of an investment in KitApps, Inc.

Incorporated in Delaware and headquartered in San Francisco, California, KitApps, Inc. ("KitApps") offers a mobile app platform ("Attendify") that enables event planners to create fully customized mobile apps for conferences, tradeshows, exhibitions and other types of events. Attendify allows anyone to build an app quickly and affordably in a fully guided, step-by-step process that puts the user in control, with event apps starting at US$399.

Event apps have seen dramatic growth in recent years as planners look for new ways to engage attendees and exhibitors and offer a better, all-round experience, while also gathering data to improve future events.  According to IBISWorld's Party & Event Planners market research report (June 2012), with over 1.8 million conventions, conferences and incentive meetings taking place annually in the US alone, the market growth opportunity is huge.

TMT's investment consists of a US$200,000 unsecured convertible promissory note in KitApps ("Note") on the following terms:

·    Interest rate - 2% per annum.

·    Term - unless previously converted, the Note will be repayable in whole or in part at par at TMT's option on any date after 10 July 2014.

·    Conversion -

o  Automatic conversion: any outstanding principal and unpaid accrued interest on the Note will be automatically converted into KitApps's equity securities upon closing of the next equity financing of at least US$1,000,000, at an equity valuation equal to the lower of (a) the equity valuation of KitApps applicable to the next equity financing, or (b) US$3,000,000 for the whole of KitApps's fully diluted common stock.

o  Optional conversion: prior to a change of control of KitApps or after 10 July 2014, any outstanding principal and unpaid accrued interest on the Note may be converted at TMT's option at an equity valuation equal to US$3,000,000 for the whole of KitApps's fully diluted common stock.

Michael Balyasny (CEO) and Artyom Yaremchuk (COO) co-founded KitApps in 2011.  Michael previously founded Shift Labs, a software development company serving clients in the US, Europe and Israel.  Artem has strong marketing, management and leadership skills.  He previously worked at Vivex Invest, where he led a number of successful online ventures.

Alexander Selegenev, Executive Director of TMT Investments PLC, commented: "The event industry's infrastructure has transformed significantly in recent years.  We believe Attendify provides all parties involved in an event with a winning solution: attendees can discover, sign up, attend and pay for events in minutes using mobile apps; event organisers can reduce printing and other costs; while exhibitors can interact with attendees more effectively."

Definitive agreements for the transaction were entered into, and the transaction was completed, yesterday.

For further information contact:

TMT Investments Plc Mr. Alexander Selegenev www.tmtinvestments.com	[phone] [e-mail]
ZAI Corporate Finance Ltd. NOMAD and Broker Marc Cramsie/Irina Lomova	[phone]
Kinlan Communications David Hothersall	Tel. [phone] [e-mail]

About TMT Investments

TMT Investments PLC invests in high-growth, internet-based companies across a variety of sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has raised USD28m and invested in 26 companies to date. The company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com

 

END

 

 

MSCNKDDNFBKKDOD