MSM Corporation International Ltd (ASX: MSM), a company from the media and entertainment sector which deals in developing and commercializing the online talent contest announced that it was able to raise $0.870 million out of the total $1.44 million funding through a convertible note. The company confirms that it will able to raise the outstanding capital in the upcoming weeks. For raising the capital, Emerald Capital Australia Pty Limited is the lead manager.
After 20 September 2018, the shares were under trading halt regarding the placement of the securities under the binding agreement. During the extended suspension period of the company, it aimed to resolve its pending compliance matters, was working on cost reduction and also developing the relationship with Riva Technology and Entertainment Limited (RTE) to create and provide a framework around the potential license for mobile gaming and Esports through the Megastar platform.
Out of the total fund of $0.870 million raised by MSM, the company made its initial installment of US$0.5 million for subscribing shares of RTE. It was also able to successfully secure first ranking, interest-free loan notes in RTE for US$1.5 million over two installments.
On the other hand, RTE is in its negotiation phase with J&D Holdings Limited (J&D) (which is the only legal and beneficial owner of Firefly Games Inc) to acquire its majority equity interest in it as per the share purchase agreement.
Once the loan notes that need to be paid by MSM by 31 December 2019, then MSM along with other subscribers of the notes will be eligible for all profit distribution which RTE receives from J&D.
Firefly Games Inc. which established in January 2015 along with the Riva Group will together be developing and publishing its upcoming title DreamWorks Universe of Legends mobile game and their future game releases.
The official listing date of MSM on ASX is 20 November 1996 where the performance of the company was -99.67%. In 5 years, MSM’s performance was 271.43%. MSM’s last one-year performance was -95.91%.
For the financial year 2018, which ended on 30 June 2018, MSM made a loss of $18,921,838 which increased by 49% as compared to a previous fiscal year. The balance sheet of the company is into an unfortunate condition where the company has a vast net liabilities of $2,031,185. Based on the position of the total current asset and the total current liabilities, it indicates that the company is not a situation to meet its working capital requirement and will also not be able to clear its short-term debt. There is also a deficiency in the total shareholder’s equity during the period as a result of increased accumulated losses. Accumulated losses during the period were almost 1.8 times its previous financial year.
There is also a decrease in the net cash and cash equivalent for the period under consideration. By the closure of the fiscal year 2018, the net cash and cash equivalent available with MSM Corporation International Ltd was A$303,875.
At present, the trading of MSM shares on ASX is in suspended status. It traded last on ASX on 20 September 2018 at A$0.009.
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