Proposed Changes To Business Arrangements In Asia And Related Matters
PMG have also signed an agreement for OCG to become Partner Sponsor to the UBS Hong Kong Open golf tournament in November 2007.
The Omega Mission Hills World Cup is the only world team stroke play event and carries a prize purse of US$5 million
Parallel Media Group plc (the 'Company' or 'PMG') has today made a number of announcements and expects the Company's shares to be re-admitted to trading on AIM today. In summary, these announcements detail.
Proposals for the dissolution of the Company's arrangements for the current business activities operated through the company's associated company Parallel Media Asia (2003) Ltd ('PMA') which promotes five Asian golf tournaments. This would result in:
PMG becoming the sole promoter of the UBS Hong Kong Open and the TCL Classic golf tournaments
PMG would cease to be interested in PMA and the three other Asian golf tournaments
All inter company balances due from PMA settled
PMG is seeking to raise approximately £3.5 million to repay these and other loans and to provide further working capital.
An extraordinary general meeting has been convened for 7 September 2006 to approve the resolution necessary to implement a fundraising.
A further announcement will be made before that meeting giving final details of the proposals.
Two new non-executive directors, Leonard Fine and Edward Adams, were appointed yesterday.
The Company has today released its final results for 2005 and its interim results for the first half of 2006.
The Chairman's statement accompanying the interim results refers to continuing trading progress in the second half of 2006, good visibility of income for 2007 and the prospect of announcing new opportunities to grow PMG's core business shortly.
Commenting on the announcements, David Ciclitira, Chairman of PMG said:
'The last few years have been very tough, but I believe that the results announced show that we are now moving forward strongly. The dissolution of our Asian joint venture, the fund raising and other matters would leave us well placed to drive the business forward profitably from a solid balance sheet.'
