Business
Investment in DepositPhotos Inc.
Investment in DepositPhotos Inc..
About this update from Tmt Investments Plc
[{"type":"text","content":"\n \nRNS Number : 1701L TMT Investments PLC 27 July 2011 \n\n \nTMT INVESTMENTS PLC\n(\"TMT\" or the \"Company\")\n \nInvestment in DepositPhotos Inc.\n \nThe Board of TMT is pleased to announce completion of an investment in DepositPhotos Inc. (\"DepositPhotos\"), a rapidly growing photobank selling images on a royalty-free basis. \n \nA photobank is an online image storage facility, acting as intermediary between picture right owners and buyers. It provides authors with access to customers and payment processing facilities, while giving buyers an opportunity to effectively search for and inexpensively buy high-quality and legally licensed images.\n \nDepositPhotos is an unquoted private company incorporated in Florida. It was established in 2009 by its founder, Dmitry Sergeev, and is now a rapidly growing online source of photos, illustrations and vector art for designers, advertisers, photo editors, content managers or individuals, with millions of high-quality images available at affordable prices.\n \nTMT has acquired new shares amounting to 15% of DepositPhotos's equity capital (post-transaction) for a consideration of $1,988. In addition, TMT has agreed to make capital contributions to DepositPhotos of twice the amount of any capital contributions made by Mr. Sergeev in the period up to 3 years, up to a total further investment by TMT of $1m. Capital contributions will not alter the percentage shareholdings of the parties.\n \nTMT has also been granted an option to increase its investment in DepositPhotos by subscribing for new shares representing a further 15% of the share capital at an aggregate price of between $500,000 and $2m, dependent on the amount of DepositPhotos's audited EBITDA for the period of one year from the completion of the initial investment. \n \nThe agreements between the parties include pre-emption rights in favour of the Company in the event of a proposed sale of shares by any shareholder, and a right on the part of shareholders to participate in any sale of shares where the Company does not exercise its pre-emption right. \n \nIn respect of the year ended 31 December 2010, DepositPhotos's unaudited loss before taxation amounted to $251,869, and unaudited net assets as at that date amounted to ($306,154).\n \nThis investment p...