Warthog plc, formerly the Interactive Entertainment Software Group, today
announces its interim results for the 6 months ended 30th September 2004.
Chairman's Statement
On the 3rd November 2004 I announced that Warthog plc had completed the sale of
all the company's subsidiaries to Tiger Telematics Inc ("TGTL"). Effectively
therefore the attached financial results for the 6 months to 30th September 2004
are of historical value only and I don't propose to comment on them except to
say that they underline the difficulties facing Warthog plc during that time
which led to the TGTL transaction. As a result of that transaction Warthog plc
now owns 497,866 shares in TGTL which, at the market price on completion of
$14.06 per share, valued that investment at $7 million. These shares are
currently held in escrow and in accordance with US securities laws are
restricted stock that can only be traded on or after the first anniversary of
completion of the transaction. During this period TGTL is effectively allowed
to offset any claim it may have arising under the warranties, tax indemnities
and final net asset values as set out in the completion accounts. At today's
date it is too early to say whether or not TGTL will have any claims against the
restricted stock.
As you are aware all the executive directors and staff of Warthog plc, together
with all other assets, were transferred to TGTL as part of the transaction
leaving only myself and David Robinson as non executive directors. We are in
the process of finalising the plc's affairs following which we estimate that the
plc will have in excess of #150,000 of cash plus the TGTL stock but with no
actual or contingent liabilities.
As of today's date the mid price of the TGTL stock was approximately $24 which
places a value on it of $11.95 million (or #6.29 million assuming an exchange
rate of $1.90 to the #1.00). The value of Warthog plc is therefore directly
linked to that of TGTL but as we are not able to trade TGTL stock it is not
possible to predict what its value will be when we are in a position to deal in
that stock. However, we are encouraged by the TGTL stock performance to date.
The best way to track progress of TGTL is on their website
www.tigertelematics.com and as to their stock price at www.pinksheets.com
quoting their stock symbol TGTL.
The directors are giving consideration as to what opportunities there may be to
exploit the status of Warthog plc as an AIM listed vehicle.
Warthog stock quotes
Warthog stock charts
Follow this thread
