Macromac PLC Launch of Macromac Venture Ltd. (3937K)

TIDMMACC

RNS Number : 3937K

Macromac PLC

16 April 2015

16 April 2015

Macromac plc

("Macromac", "the Company" or "the Group")

Incorporation of new subsidiary focused on investing in complementary businesses

The Board of Macromac (AIM: MACC), the AIM quoted company principally engaged in the business of mobile messaging services and software solutions, is pleased to today announce the launch of a new complementary business area. Macromac Venture Ltd. ("MVL"), a newly incorporated wholly owned subsidiary of the Company, has been established by the Company to make strategic investments and/or acquisitions in early stage businesses in areas complementary to Macromac's existing business operations.

The Board has decided to authorise MVL with a budget of RM3,000,000 (c. GBP550,000*)in cash to fund their investments, with the cash being funded from the Company's existing cash resources. As at 31 March 2015, the Group held cash of c. RM9.7 million (estimate based on the Group's unaudited management accounts) and therefore the Group will be committing c.31% of cash available as at 31 March 2015 into MVL. The Company will also consider issuing new ordinary shares in Macromac as part consideration for prospective new investments that are made by MVL.

MVL will seek to acquire interests in start-up or early-stage businesses with complementary operations to the Group's existing operations in mobile messaging and software solutions. Investee companies are expected to be at pre or early-revenue stage and be based in South East Asia.The Group will seek to invest in businesses where Macromac is able to utilise its experience to provide management assistance, funding and guidance to grow the business to a position of commercialisation of its products or services.

The Group will seek to initially acquire significant minority stakes, with an option to acquire controlling stakes in the future. The Directors have identified some initial target investments, with the initial target companies operating in the areas of mobile application development, bulk messaging gateway and mobile/digital advertising.

The commitment of capital into MVL will reduce the funds available to the Group for the development of its existing business operations and, therefore, is expected to affect the Group's profitability in the short to medium term. The Directors believe that, in the long term, the incorporation and launch of MVL is in the best interests of the Company as it seeks to diversify its business operations.

Michael Lew, Chief Executive Officer of the Company, commented:

"We believe that South East Asia is a fast growing region with a population of in excess of 615 million. We believe that now is the best time to support new technology companies to assist in their growth and penetration, allowing us to expand our business further into related businesses and diversify the breadth of business activities. Since we listed on AIM in September 2013, we have successfully acquired Smile Interactive Co., Ltd, a Thailand mobile content gateway, and we look forward to MVL successfully undertaking further investments and acquisitions for the benefit of the Group's shareholders."

For further information please visit www.macromacgroup.com or contact:

Macromac PLC [phone]

Michael Lew, Chief Executive Officer

Andrew Khoo, Chief Operating Officer

Allenby Capital Limited (Nominated Adviser and Broker) [phone]

Nick Athanas

James Reeve

Leander (Financial PR) [phone]

Christian Taylor-Wilkinson

* all GBP equivalent calculations are based on an illustrative RM/GBP exchange rate of 0.1837 as at 15 April 2015

About Macromac

Macromac is a group of companies headquartered in Malaysia comprising two divisions. The Company aims to deliver mobile content and web-based marketing solutions to its customers across South East Asia. Through its proprietary MMP, the Company provides Premium and Bulk Mobile Messaging solutions for corporate and advertising campaigns, allowing its clients to better reach their customers by delivering targeted mobile messaging. The Company also develops project-based customised software solutions for its SME clients.

This information is provided by RNS

The company news service from the London Stock Exchange

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