8 March 2013
TMT INVESTMENTS PLC
("TMT" or the "Company")
Additional investment in Tracks Media, Inc.
TMT Investments PLC, which invests in high-growth, internet-based companies across a variety of sectors, is pleased to announce the completion of an additional investment in Tracks Media, Inc. ("Tracks").
Incorporated in Delaware and headquartered in New York City, NY, Tracks (www.tracks.io) is a mobile and web service that enables users to effortlessly create photo stories around real world experiences ('tracks'). Each track is a living micro-social network based on thematic experiences in the real world.
TMT's original investment in Tracks was completed on 24 November 2011 and consisted of a US$450,000 unsecured convertible promissory note in Tracks (the "First Note"). In December 2012, the First Note's term was extended to 30 November 2013.
TMT's new investment consists of a US$100,000 unsecured convertible promissory note in Tracks (the "Second Note") on the following terms:
· Interest rate - 5% per annum.
· Term - the Second Note will be repayable in whole or in part at par at TMT's option on any date after 30 November 2013.
· Conversion -
o Automatic conversion: Any outstanding principal and unpaid accrued interest on the Second Note will be automatically converted into Tracks's equity securities upon the earliest of (i) closing of the next equity financing of at least US$2,000,000, or (ii) change of control of Tracks, in either case at an equity valuation equal to the lower of (i) 85% of the equity valuation of Tracks applicable to the next equity financing or change of control, or (ii) US$5,000,000 for the whole of Tracks's fully diluted common stock.
o Optional conversion: If Tracks's next equity financing is less than US$2,000,000, any outstanding principal and unpaid accrued interest on the Second Note may be converted into Tracks's equity securities at TMT's option at an equity valuation equal to the lower of (i) 85% of the equity valuation of Tracks applicable to the next equity financing or (ii) US$5,000,000 for the whole of Tracks's fully diluted common stock.
Alexander Selegenev, Executive Director of TMT Investments PLC, commented: "The recent release of Tracks 2.0 has resulted in significant growth across all of the product's key metrics, including adoption, engagement and content creation. The current financing will enable Tracks to concentrate on delivering further growth and intensifying its monetisation efforts."
Definitive agreements for the transaction were entered into, and the transaction was completed, yesterday. In respect of the year ended 31 December 2012, Tracks's unaudited net loss amounted to US$1,148,802, and unaudited net liabilities as at that date amounted to US$1,793,495.
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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, TMT has raised USD28m and 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
