News Column

SyQic To Raise GBP1.9 Million In Placing To Fund Maaduu Acquisition

August 18, 2014

Hana Stewart-Smith

LONDON (Alliance News) - SyQic PLC said Monday it has agreed to buy PlayTV Asia Sdn Bhd's Maaduu video-on-demand service for up to CNY5.5 million, plus GBP60,000 in SyQuic shares.

Maaduu provides Korean content across multiple devices, and is supported by advertising. It has around 850,000 registered users to add to SyQic's current subscriber base. SyQic said the acquisition will allow it to address different target demographic groups.

The company also announced that it had seen strong trading in the half year to end-June, with pretax profit of GBP970,000, up from just GBP35,000 in the previous year, on revenues of GBP4.6 million, a more than fivefold increase over GBP880,000 the previous half year.

SyQic expressed confidence in its future, citing increasing consumer demand for mobile video content. It expects to be able to general "significantly increased" advertising revenues from Maaduu following completion. It also expects it to generate extra revenue for its core telecommunications business.

Maaduu's revenue for the financial year to end-May were CNY19,000. It expects the ongoing fixed costs to SyQic, including content costs, resulting from the acquisition to be around GBP28,000 per month.

The acquisition will be part funded through a placing to raise GBP1.9 million with existing and new shareholders, through the conditional placing of 3.7 million new shares at 50 pence each. It said the placing price was a discount of 3.85% on its closing price on Friday.

Shares in SyQic were trading up 4.6% at 57.00 pence Monday morning.

The company said it the acquisition does not complete, it will use the net proceeds of the placing to further enhance its Yoonic video platform, sales and marketing, content acquisition and working capital. GBP25,000 of the placing proceeds are subject to an extraordinary general meeting.

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Source: Alliance News

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