Vision Media agrees terms on TrainTV
VISION Media Group has agreed new terms for the £2.19m disposal of its loss-making Train TV business.
The Cheadle-based, AIM-listed company had resorted to raising cash from friends and family because the sale has taken so long to complete.
Chairman Mike Cottman said “extreme financial circumstances” forced the business, formerly ScreenFX, to scale back the roll out of its interactive advertising screens in shopping centres.
This morning the group said it hoped to return to its original strategy as it announced the sale of 49.9% of the business for £920,000 to the RAM Investment Group. RAM has also taken an option to acquire the rest of the shares by August 31 for £1.27m in cash and shares.
The cash component of £785,000 will be used to pay off Vision Media debts with Trafalgar Capital Partners.
According to draft accounts Train TV, which was set up to run TV services on commuter trains, made a loss of £500,000 in the year to December on turnover of £20,000. The company had liabilities of £2.2m during the period.
Mr Cottman said: “We are pleased to agree terms for the refinancing of TrainTV. The funds generated from the initial investment will support the Group and its ongoing liquidity issues.
“The extreme financial circumstances that have affected VMG in recent months continue and the deal with RAM is an important source of finance in the absence of traditional funding methods.”
