Matomy Media Group Ltd Updated Sources and Expected Uses Report 2019 2020 (3314S)

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RNS Number : 3314S

Matomy Media Group Ltd

08 March 2019

March 8, 2019

Updated Sources and Expected Uses of Funds Statement (excluding Team Internet) for 2019-2020

Pursuant to Sources and Expected Uses of Funds Statement (Solo, excluding Team Internet) for 2019, as was published on January 3, 2019, and to the Updated Key Features for the Proposed Plan issued on January 9 and January 23, 2019, Matomy Media Group Ltd. (LSE: MTMY, TASE: MTMY.TA) ("Matomy" or "Company") announces the publication of its Updated Sources and Expected Uses of Funds Statement (Solo, excluding Team Internet) for 2019 and 2020.

The information contained within this announcement may be deemed by Matomy to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

Cautionary statement regarding forward-looking statements

This announcement includes certain forward-looking statements, forecasts, estimates, projections and opinions. These forward-looking statements may be identified by the fact that they do not relate only to historical or current facts or the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements include statements regarding the business strategy, objectives, financial condition, results of operations and market data of the Company and its subsidiaries (the "Group"), as well as any other statements that are not historical facts. These statements reflect the Company's current view with respect to future events and are based on assumptions made the Company (including, without limitation, assumptions concerning currency exchange rate fluctuations, requirements of additional capital, costs of closure of various operations and changes to regulations) and information currently available to the Company.

Although the Company considers that these views and assumptions are reasonable, by their nature, forward-looking statements involve unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Group. These factors, risks, uncertainties and assumptions could cause actual outcomes and results to be materially different from those projected. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. These factors, risks, assumptions and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to the Company or persons acting on its behalf.

The forward-looking statements speak only as of the date of this announcement. Each of the Company and its respective affiliates expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement and disclaims any obligation to update its view of any risks or uncertainties described herein or to publicly announce the result of any revisions to the forward-looking statements made in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or otherwise, except as required by law.

No statement in this announcement is intended, or is to be construed, as a profit forecast or estimate or to be interpreted to mean that earnings per Company share or overall earnings for the current or future financial years will necessarily match or exceed the historical published earnings per Company share or overall earnings.

About Matomy

Matomy Media Group Ltd. (LSE: MTMY, TASE: MTMY.TA) is a global media company. Founded in 2007 with headquarters in Tel-Aviv and offices around the world, Matomy is dual-listed on the London and Tel Aviv Stock Exchanges.

Press Contact Information:

Noam Yellin, [e-mail], [phone]

Website: http://investors.matomy.com

LinkedIn: www.linkedin.com/Company/matomy-media-group

Twitter: @MatomyGroup

Facebook: www.facebook.com/MatomyMediaGroup

 
 
 
 
   Matomy Media Group Ltd. - Sources 
    and Expected Uses of Funds Statement 
    (Solo, excluding Team Internet) 
    - 2019/20 
 
   in thousands of USD 
                                            Q1 - 2019      Q2-2019     Q3-2019     Q4-2019        2020 
   Opening balance                           $ 5,778      $ 7,843       $ 2,190    $ 4,077      $ 3,562 
 
   Sources: 
   Cash flow from Operations: 
   Working Capital Mobfox activity           $ 680        $ 244 
   Tax Receivable - Matomy USA               $ 555        $ 198         $ 920 
   Tax Receivable - Matomy KG                $ 711                                 $ 3,897      $ 2,802 
   Dividend from Mobfox Austria              $ 85 
   Dividend from Team Internet               $ 4,600      $ 1,900       $ 2,030    $ 3,492      $ 9,213 
   Withholding tax on Team Internet 
    Dividend                                 $ (1,213)    $ (501)       $ (535)    $ (553)      $ (1,458) 
 
   Cash flow from Finance activity: 
   Rights Issue                                           $ 10,000 
   Bond Series A Expansion                                $ 2,000 
   Issuance Cost                                          $ (1,000) 
 
   Cash flow from Investment activity: 
   Sale of myDSP - last payment              $ 250 
                                             $ 5,668      $ 12,841      $ 2,415    $ 6,837      $ 10,557 
                                           -----------  ------------  ---------  -----------  ----------- 
 
   Expected Usage of Funds: 
 
   Cash used for Operations:                 $ (438)      $ (438)       $ (438)    $ (438)      $ (1,750) 
   One-time Cost of Operations               $ (1,019) 
   Legal cost of bond settlement             $ (500) 
   Bond interest due                                      $ (1,057)                $ (1,004)    $ (1,652) 
   Hedging loss                              $ (750) 
 
   Cash flow used for Financing 
    activity: 
   Bond principal payment                                 $ (3,500)                $ (5,100)    $ (6,000) 
   Long term loan - repayment to 
    Leumi Bank                               $ (897) 
   Rainmaker payments                                     $ (13,500)    $ (90)     $ (810)      $ (360) 
                                             $ (3,603)    $ (18,495)    $ (528)    $ (7,352)    $ (9,762) 
                                           -----------  ------------  ---------  -----------  ----------- 
 
   Closing balance                           $ 7,843      $ 2,190       $ 4,077    $ 3,562      $ 4,357 
 
   Bank Leumi Deposit                        $ 940        $ 940         $ 940      $ 940        $ - 
 
   Available Balance                         $ 6,903      $ 1,250       $ 3,137    $ 2,622      $ 4,357 
  =======================================  ===========  ============  =========  ===========  =========== 
 
 
   Assumptions: 
   1. The statement assumes settlements between the Company, the bondholders, 
    Rainmaker and any other relevant stakeholders, based on the updated key features 
    for the Proposed plan published on January 9, 2019, and the clarifications 
    that were published on January 23, 2019 ("Proposed plan"). On January 30, 2019 
    the majority of the bondholders voted in favour of an indicative non-binding 
    approval of the Proposed Plan. The main key features of the Proposed Plan are 
    as follows: 
      1.1 A fundraising with a commitment from key shareholder to invest $10M in 
       addition to a commitment to purchase bonds in the amount of up to $2M as part 
       of an expansion of the Series A Bonds. 
      1.2 Payment of $13.5 to Rainmaker, based on preliminary understandings between 
       the parties. 
      1.3 Updated payment schedule on the principal of the bonds of $3.5M, $5.1M, 
       $6M in Q2 2019 ,Eo2019, Eo2020 respectively 
   To date no agreement has been signed and there is no assurance with respect 
    to the outcome of the actual foregoing discussions or with respect to the actual 
    implementation of the proposed settlement 
 
   * If a settlement is is not concluded, the amounts due will vary as follows: 
      - Payment to Rainmaker shall be due which based on the demand from Rainmaker 
       is in an amount of approximately $18M plus interest 
      - Payment to the bondholders in an amount of approximately $30M (with a potential 
       claim for immediate repayment) 
    In addition, in such event Rainmaker may have the right to pursue other remedies, 
     including the right to purchase some or all of the shares of Team Internet, 
     as described in further detail in Note 1(b) in the Company's Consolidated Financial 
     Reports for Q3, 2018). 
    - The amounts of dividends that may be distributed by Team Internet to Matomy 
     depend on the percentage holdings of Matomy in Team Internet and on the dividend 
     policy at the relevant time. 
   2. In connection with Bank Leumi's approval of the sale of Mobfox Matomy provided 
    $3M secured cash deposit to Bank Leumi against its liabilities (long term debt, 
    securities related to lease agreements and Forex hedging). This cash deposit 
    is reduced proportionately as Matomy repays its liabilities 
 
   4. Timing of distribution of Team Internet's dividends may vary based on liquidity 
    limitations 
 
   5. This statement represents the Sources and Expected Uses of Funds of Matomy 
    Media Group Ltd. (solo report) and differs from the statement published in 

    connection with the Q3 audited reports which was provided on a full consolidation 
    basis, and included all bank cash reserves held by the Company's subsidiary 
    Team Internet. 
 
   Unreviewed Statement 
   The statement contains unreviewed financial measures that do not have a standardized 
    meaning prescribed by GAAP. 
 
   Cautionary statement regarding forward-looking statements 
   This statement includes certain forward-looking statements, forecasts, estimates, 
    projections and opinions. These forward-looking statements may be identified 
    by the fact that they do not relate only to historical or current facts or 
    the use of forward-looking terminology, including the terms "believes", "estimates", 
    "plans", "projects", "anticipates", "expects", "intends", "may", "will" or 
    "should or, in each case, their negative or other variations or comparable 
    terminology, or by discussions of strategy, plans, objectives, goals, future 
    events or intentions. Forward-looking statements include statements regarding 
    the business strategy, objectives, financial condition, results of operations 
    and market data of the Company and its subsidiaries (the "Group"), as well 
    as any other statements that are not historical facts. These statements reflect 
    the Company's current view with respect to future events and are based on assumptions 
    made the Company (including, without limitation, assumptions concerning currency 
    exchange rate fluctuations, requirements of additional capital, costs of closure 
    of various operations and changes to regulations) and information currently 
    available to the Company. 
   Although the Company considers that these views and assumptions are reasonable, 
    by their nature, forward-looking statements involve unknown risks, uncertainties, 
    assumptions and other factors because they relate to events and depend on circumstances 
    that will occur in the future whether or not outside the control of the Group. 
    These factors, risks, uncertainties and assumptions could cause actual outcomes 
    and results to be materially different from those projected. Past performance 
    cannot be relied upon as a guide to future performance and should not be taken 
    as a representation that trends or activities underlying past performance will 
    continue in the future. No representation is made or will be made that any 
    forward-looking statements will be achieved or will prove to be correct. These 
    factors, risks, assumptions and uncertainties expressly qualify all subsequent 
    oral and written forward-looking statements attributable to the Company or 
    persons acting on its behalf. 
   The forward-looking statements speak only as of the date of this announcement. 
    Each of the Company and its respective affiliates expressly disclaim any obligation 
    or undertaking to update, review or revise any forward-looking statement and 
    disclaims any obligation to update its view of any risks or uncertainties described 
    herein or to publicly announce the result of any revisions to the forward-looking 
    statements made in this announcement to reflect any change in the Company's 
    expectations with regard thereto or any change in events, conditions or circumstances 
    on which any such statement is based or otherwise, except as required by law. 
   No statement in this announcement is intended, or is to be construed, as a 
    profit forecast or estimate or to be interpreted to mean that earnings per 
    Company share or overall earnings for the current or future financial years 
    will necessarily match or exceed the historical published earnings per Company 
    share or overall earnings. 
 
 
 

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March 08, 2019 06:22 ET (11:22 GMT)