Kaptungs, a substantial shareholder of Mirada Plc (LON:MIRA), is pumping £3mln into the over-the-top TV software specialist by subscribing for 3mln shares at 1p each.
The company has also entered into a conditional agreement with Kaptungs in respect of the capitalisation of an outstanding £3mln loan facility, which will result in Mirada's obligation to repay the 2018 secured facility (see linked story below) being waived, while Kaptungs will receive another 300mln Mirada shares.
READ: Mirada arranges new loan facility with major shareholder
If the proposed share issues are approved by shareholders, Kaptungs would hold around 67.35% of the enlarged issued share capital of Mirada; Ernesto Tinajero, through his interest in Kaptungs, would, therefore, be beneficially interested in around 87.21% of Mirada.
Tinajero is a long-term supporter of the company. Between 1996 and 2003, he was a majority shareholder, chairman and chief executive officer of Group Cable TV (Cablecom), the third largest multiple systems operator in Mexico. Cablecom was a customer of Mirada and is now part of the Televisa Group, a current major customer of Mirada.
The general meeting to vote on the proposals will be held on October 4.
In explaining the reasons for the proposals, the company said it would support its “operating expenditure” (opex) business model, whereby it provides subscriber-based licences on a 'software-as-a-service' basis; while this makes life easier for customers, through lower set-up fees, the model requires a significant initial working capital commitment from Mirada.
The directors believe that a sufficiently strengthened balance sheet will enhance Mirada's standing in its industry and thereby assist the conversion of opportunities in its sales pipeline. The board also believes that it is important that the company has sufficient funds to cover increasing demand for professional services projects from customers or to mitigate potential delays in projects.
Shares in Mirada closed at 0.68p on Friday, so the new shares are being issued at a significant premium to the prevailing market price.