TIDMGATE

RNS Number : 5764T

Gate Ventures PLC

21 July 2015

 
 Press Release   21 July 2015

Gate Ventures Plc

("Gate Ventures" or the "Company")

GBP2.6 million investment in Infinity Creative Media Limited

The Board of Directors ("Board") of Gate Ventures Plc announces that it has reached full commercial terms to invest GBP2.6 million in Infinity Creative Media Limited ("Infinity"), giving Gate Ventures a 20% equity share at a pre-investment valuation of GBP13 million in Infinity with an option to acquire a further 5% stake. A down-payment of GBP100K has been made as part of the terms of a signed Memorandum of Understanding, and the commercial terms are proceeding to formal contract.

Infinity is a UK based television production studio of which Lord Michael Grade, a former Chairman of the BBC, is Chairman. The founder is Russ Lindsay, a former manager of Ant & Dec, Simon Cowell, Phillip Schofield and Piers Morgan. The CEO is Ross Westgate, who has over 20 years' experience in the global broadcast business, including assisting in the launch of the European TV operations of Dow Jones and CNBC.

Infinity is producing a number of investor funded 13 one hour ("13x1") high quality TV magazine programmes for global distribution, where the commercial IP remains vested entirely with Infinity and its investors.

Infinity has four 13x1 original television formats currently in production, these being The Classic Car Show, The Wine Show, The Art Show, and The Luxury Lifestyle Show. Further series, including The Football Show and The Theatre Show, are currently in development. Each series produces numerous income streams for Infinity such as an executive production fee and sales commissions amounting to over GBP450,000 per series, with potential for additional on-going revenues, on top of the value created from the format's original IP.

Geoff Morrow, Chairman of Gate Ventures PLC, said:

"Infinity is an exciting business with excellent and experienced management which has the drive and enthusiasm to make Infinity one of the top television and film producers in the UK. The intention is that apart from its current normal distribution networks, Infinity will also take advantage of Gate Ventures' expertise and connections in China, to sell its production content to TV stations and other media distribution platforms. This important major investment for Gate Ventures is the first of several, in line with its investment strategy.

"The Company is already in detailed discussions in relation to three other media investments, with commercial terms agreed in principle."

- Ends -

For further information:

 
 Gate Ventures Plc        Tel: +44 (0) 20 7016 9963 
 Geoff Morrow, Chairman             www.gateplc.com

Media enquiries:

 
 Abchurch Communications 
  Limited 
 Canace Wong / James Burman        Tel: +44 (0) 20 7398 7714 
 GateVentures@abchurch-group.com      www.abchurch-group.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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