CM8’s Shares Uplifted On ASX As It Undertakes Refinancing Of Its Debt Facility

CM8’s Shares Uplifted On ASX As It Undertakes Refinancing Of Its Debt Facility

Global media and marketing company, Crowd Media Holdings Limited’s (ASX:CM8) current JGB debt facility was going to expire on 31st January 2019. However, today (29 January 2019) the company announced that it has received confirmation that JGB has extended the deadline to 28th February 2019. Meanwhile, the company is evaluating and negotiating a number of Term Sheets it has received for the refinance of the entire JGB debt facility. Following this news, the share price of the company increased by 9.375 percent as on 29 January 2019 (AEST 1:17 PM).

The refinance of the JGB facility is expected to be completed by the end of February 2019. As per the announcement, the current JGB outstanding debt is €1.45 million (approximately AUD 2.3 million). As at 31 December 2018, the Company had a net debt of circa AUD 1.5 million.

In December 2018, the company changed its name from Crowd Mobile Limited to “Crowd Media Holdings Limited”.  On 8 November 2018, the company announced a share purchase plan which got closed on 5 December 2018. In the Share Purchase Plan, the company had offered eligible shareholders in Australia and New Zealand the opportunity to subscribe for up to $15,000 worth of new, fully paid, ordinary shares in Crowd Mobile. The company issued around 11.235 million shares under the Share Purchase Plan.

In the Annual General Meeting held in November 2018, the Chairman of the company told that the FY 2018 was a challenging year for the company, and this has somewhat continued through to the start of FY 2019 also. The company has been dealing with the changing regulatory framework around its Mobile division and continued investment in its Media division which will contribute to a small loss for the FY19 December half. The chairman also told that FY 2018 was the beginning of the company’s transition from a product-centric company to a platform company focused on the growing digital media and influencer sector. The company is expecting revenues for the FY 2019 December half to be around $1.25 million which is up 250% from $0.5 million the year before. The Chairman also informed that in FY 2018, the company had a stable performance within the Q&A division and stabilization of its Subscription division.

The company earned revenue, interest and other income for the year ended 30 June 2018 (FY 2018) of $38.56 million versus $43.916 million in the prior year. In FY 2018, the company’s net loss after tax was $26.041 million.

The company’s net asset position at 30 June 2018 was $4,655,431, a decrease of 84 percent over the prior year of $29,911,258 and largely reflecting a non-cash impairment of Track Goodwill. For FY 2018, the company generated positive operating cash flow of $2,639,215.

CM8’s shares traded at $0.035 with a market capitalization of circa $7.47 million as on 29 January 2019 (AEST 1:17 PM).


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