20 February 2013
TMT INVESTMENTS PLC
("TMT" or the "Company")
Investment in Adinch, Inc.
The Board of TMT, which invests in high-growth, internet-based companies across a variety of sectors, is pleased to announce the completion of an investment in Adinch, Inc. Incorporated in Delaware in 2012, Adinch, Inc. ("Adinch") has developed a universal self-service mobile advertising platform (www.adinch.com), which allows advertisers to organise advertising campaigns on iOS and Android mobile devices and developers to monetise their mobile apps and mobile websites.
One of Adinch's advantages is its innovative and unique mediation feature that allows app owners to start using Adinch without replacing their existing advertising network's software development kit ("SDK"). Adinch's universal SDK operates alongside all of the major existing mobile ad platforms, giving app owners the opportunity to allocate traffic between various networks in just several clicks. The system currently serves 10 million impressions daily and has over 2.5 million monthly unique users.
TMT has acquired 1,000,000 preferred shares representing 20.0% of Adinch's fully diluted equity capital, for an aggregate consideration of US$1,000,000.
The agreements between the parties include pre-emption rights, liquidation preferences and other rights and protections in favour of TMT customary for preferred stock holders. The acquired preferred shares may be converted at any time into Adinch's common shares at a 1:1 conversion rate.
According to the Interactive Advertising Bureau, the worldwide mobile advertising market in 2011 was estimated at US$5.3 billion. The US mobile advertising market alone is expected to reach US$12 billion by 2016, with the growing penetration of tablets and smartphones being the major growth driver. 1.3 million new Android and 0.5 million iOS devices are currently activated each day.
Adinch was co-founded by Alexey Semakin (CEO) and Andrey Semakin (CTO), both graduates from the Moscow Engineering Physics Institute. Previously they co-founded successful email service Pochta.ru and developed a number of mobile applications.
Alexander Selegenev, Executive Director of TMT Investments PLC, commented: "We see big potential in the mobile advertising segment and believe Adinch's innovative product features will allow it to capture a significant share of this growing market."
Definitive agreements for the transaction were entered into, and the transaction was completed, yesterday. Adinch did not have any financial accounts in respect of the year ended 31 December 2012.
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About TMT Investments
TMT Investments PLC invests in high-growth, internet-based companies across a variety of sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010 and with capital firepower of USD26m, TMT has invested in 23 companies to date. The company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com
