16 February 2018
Milestone (AIM:MSG), the AIM quoted provider of digital media and technology, provides a further update to the announcement made on 22 January 2018 relating to a compromise agreement ("Compromise Agreement") with City of London Markets Limited. Milestone entered into the Compromise Agreement with City of London Markets Limited following the failed placing announced on 20 October 2016 (the "Placing").
In the Placing, a dispute arose between the Company and City of London Markets Limited in relation to the issue and allotment of 83,333,332 shares (the "Shares") at a price of 1.5 pence per share, as the £1.25 million gross proceeds from the Placing were not received by the Company from its placee.
City of London Markets Limited has failed to make a payment as per the compromise agreement on the agreed basis. In order to bring this matter to a close the Company has agreed to enter into revised payment terms whereby City of London Markets Limited will pay an amount of £76,000 on an agreed payment schedule by 27 April 2018, the remaining balance of £49,000 is to be paid in quarterly instalments by 30 April 2019.
As previously announced the City of London Markets Limited waived all rights to the Placing Shares upon execution of Compromise Agreement.
The Company reserves all rights regarding legal pursuit of the matter of the Compromise Agreement should City of London Markets Limited fail to make any future scheduled payment on time.
Tony Sanders, Chief Executive Officer commented "It is very disappointing that City of London Markets Limited has failed to honour its agreement entered into on 22 January 2018. The Board has taken the view that it is in the best interest of the Company to close this matter on the revised terms as the cost and use of management time being spent is causing significant disruption to Milestone's business development."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
Catenae Innovation Plc
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Cairn Financial Advisers LLP, Nominated Adviser
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Cornhill Capital, Broker
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