Mobile Streams plc Result of General Meeting and Trading Update (1437O)

TIDMMOS

RNS Number : 1437O

Mobile Streams plc

30 September 2019

Mobile Streams plc

("Mobile Streams" or the "Company")

Result of General Meeting and Trading Update

Result of General Meeting

Mobile Streams plc announces that, at the General Meeting of the Company held earlier today, the proposed resolutions, which were put to shareholders by way of a poll, were not passed by the required majority of at least 75% of the votes cast in person or by proxy.

The results of the poll vote were as follows:

 
                                                Votes in favour   Votes against 
                                                            (%)             (%) 
 Resolution    Cancellation of the admission 
  1             to trading on AIM                         55.72           44.28 
 
               Re-registration as a private 
 Resolution     limited company and adoption 
  2             of new articles                           56.11           43.89 
 

The resolutions are set out in full in the circular dated 4 September 2019 (the "Circular"). Accordingly, the Company's ordinary shares will continue to be admitted to trading on AIM.

Trading update

Mobile Streams announces a trading update for the two months ended 31 August 2019.

   --      Unaudited revenues were GBP88k. All revenue is from continuing operations; 
   --      EBITDA loss of GBP31k; 
   --      GBP61k of cash and cash equivalents, with no debt. 

Argentine operations continue to be challenging and affected by the deteriorating economic climate and weakening Argentine Peso. Further challenges arose given the establishment of new capital controls recently implemented.

Trading in India continues to be impacted by the consolidation of mobile telecoms operators within the region. This has resulted in a high level of disruption preventing Mobile Streams from deepening its business with its partners.

As outlined in the Circular, and as a result of the continued difficult trading conditions and limited cash generation of the Company, the Directors continue to believe that cancellation of the Company's ordinary shares to trading on AIM (the "Cancellation") is in the best interests of the Company and its Shareholders as a whole.

As announced in its most recent trading update, the Directors consider that it is unlikely that the Company will successfully complete a public markets transaction such as a secondary fundraise or a reverse takeover to provide additional capital given the Company's existing low cash resources.

The Board's current priority continues to preserve the Company's limited cash resources by minimising all expenditure wherever possible and explore financing initiatives to improve its working capital position. However, the Directors acknowledge that due to the Company's current financial situation and share price, should any potential financing initiative be successful, it will likely be highly dilutive to existing shareholders.

Taking into account the Company's limited cash resources and the continued decline in the Company's revenues, the Directors believe that if funding is not available to the Company, it will be unlikely that Mobile Streams will be able to continue as a going concern.

For further information, please contact:

 
 Mobile Streams plc                    [phone] 
 Simon Buckingham, Chief Executive 
  Officer 
 Enrique Benasso, Chief Financial 
  Officer 
 
 N+1 Singer (Nominated Adviser and 
  Broker)                              [phone] 
 Mark Taylor / George Tzimas 
 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 ("MAR").

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September 30, 2019 05:59 ET (09:59 GMT)