Update on Court Hearing

RNS Number : 1077X

Brainspark PLC

09 February 2012

 



9 February 2012

Brainspark plc

("Brainspark" or "the Company")

Update on Court Hearing and

Financial Position

The Board of Brainspark reports that ahead of the court hearing on 13 February, where the Company will petition to reverse the winding up order imposed on 30 January, it has filed a witness declaration with the court stating the following:

·     All creditors which have requested settlement have now been paid.

·     During 2011 the Company's debt position was reduced from £10,781,000 to £6,488,000, a reduction of 40 per cent.

·     The debt position represents less than 25 per cent of the Company's assets

·     The Board has written to all existing creditors and 92 per cent. (representing £5,988,000) have signed a declaration stating they are against the winding up order and fully support a reversal of this decision

·     As announced earlier today, the Company has received an offer from the Company's Chief Executive Officer which will cover all short term cash requirements, ahead of receiving funds from the Mediapolis land sale

·     The Company has received a line of credit from Milan based Private Broker S.p.A. of up to £500,000 to be drawn upon immediately, if necessary

·     Mediapolis SA has signed an agreement with Gruppo Banca Leonardo S.p.A. a Milan based independent investment bank, to conduct a placing on a "best effort" basis, of all the Sorgente shares owned by Mediapolis, totalling EUR 25 million, for a 10 per cent. fee.

As disclosed in its Interim results statement of issued on 23 December 2011, the Company is currently operating with limited cash resources. Therefore, in addition to the actions above, the Board is currently in discussions with a London broker to conduct an institutional placing of up to £2 million, which will fund new investments and provide working capital in 2012.

The Company will update shareholders on 13 February following the court hearing.

-ends

For further information please contact:

Brainspark plc                                                                                                       [phone]

Alfredo Villa, Chairman and CEO

Westhouse Securities                                                                                 [phone]

Antonio Bossi

Leander PR                                                                                                 [phone]

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.

 

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