Proposed Sale of MyCast Technology
7 March 2012
Brainspark plc
("Brainspark" or "the Company")
Proposed Sale of MyCast Technology and
Resignation of Director
Brainspark, the AIM listed investment company, is pleased to announce it has has agreed the terms of a binding letter of intent (LoI) for the sale of its MyCast broadcast video technology to a US corporation, b.A.S. Media Group (BAS), for a total cash consideration of US$3,000,000.
Prior to the sale, the Company, through its 65.5 per cent. owned subsidiary, Bibop SpA will transfer all ownership of the Intellectual Property (IP) rights to the MyCast technology into a newly formed US corporation, Bibop Inc. (Bibop US).
In addition to the $3m consideration payable to Bibop SpA, BAS will subscribe to a total capital increase of US$4m in Bibop US; the funds being used to launch MyCast into the US market. Additionally, Bibop SpA will retain a 15 per cent. holding in Bibop US, this stake having an implied value of US$1,235,250.
BAS will pay the consideration and subscribe to the Bibop US capital increase in tranches as follows:
1. Within Three Months
· US$1m to Bibop SpA
· US$1m subscription to a capital increase in Bibop US
2. Within Six Months
· US$1m to Bibop SpA
· US$1m subscription to a capital increase in Bibop US
3. Within One Year
· US$1m to Bibop SpA
· US$2m subscription to a capital increase in Bibop US
Bibop SpA will continue to own all current European business activities and assets which reported sales of EUR800,000 in 2011. Also, Bibop SpA, through its 15 per cent. holding in Bibop US will continue to promote the MyCast technology in the UK and Europe, where ongoing negotiations with various TV stations have been met with positive reaction.
Gabriele Gresta, founder of Bibop and non-executive Director of Brainspark, has resigned from the Company with immediate effect and relocated to the US to focus his energies on building Bibop Inc. in the extensive US market.
Alfredo Villa, CEO of Brainspark commented, "I would firstly like to thank Gabriele for his excellent contributions to the board over the past two years and for being instrumental in the sale of MyCast. Through Bibop, the Company has taken a unique, pioneering technology and turned it into a world leading digital media product which has attracted the interest of many large TV studios and broadcasters. In line with our investing strategy, we are confident the sale of MyCast at this time is correct for the further development of the product and the Company. We wish Gabriele all the best for the future."
-ends-
For further information please contact:
Brainspark plc
Alfredo Villa, CEO +39 02 525 051
Justin Drummond, Executive Chairman +44 (0) 7747 755 489
Westhouse Securities +44 (0) 20 7601 6100
Antonio Bossi
Jonathan Haines
Leander PR +44 (0) 7795 168 157
Christian Taylor-Wilkinson
About Brainspark Plc
Brainspark plc (AIM: BSP) is an AIM listed investment company pursuing a dynamic strategy to create a comprehensive portfolio of companies primarily encompassing the interactive media, leisure, entertainment and financial services sectors mainly in Italy but also other European countries. The company may be either a passive or active investor and Brainspark's investment rationale ranges from acquiring minority positions with strategic influence through to larger controlling positions.
This information is provided by RNS
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