Mercom Capital to clear out board and change its name

Mercom Capital confirmed on Wednesday that discussions with Calvet International regarding the proposals set out on 1 December were ongoing.

The AIM-traded company said those proposals now involved the imminent appointments of Simon Fry as executive chairman, Jean-Pascal Tranié as senior non-executive director and Felipe Simonsen as finance director.

Subject to final agreement being reached, concurrent with the proposed appointment of the New Board, John Zorbas, Patrick Cross and Kyle Appleby intended to stand down as directors of Mercom and sell or grant an option over their respective entire existing holdings of shares in the company amounting to 7,395,633 shares, the board added.

“An immediate priority of the new board will be to progress the cash fundraising and associated issues of warrants, subject to shareholder approval of resolutions five and six at the company's annual general meeting convened for 5 January,” the board said in a statement.

It said it envisaged that the proposed cash fundraising would involve the issue of 10 million new shares at 30p per share to new investors, to raise £3.0m before expenses, combined with the issue of Warrants to the new investors on a 1:1 basis exercisable at 80p per share and expiring 180 days after issue.

The fundraising would also involve the issue of bonus warrants to Mercom shareholders on a 1:4 basis exercisable at 80p per share and expiring 180 days after issue.

Mercom’s new board also proposed to convene a general meeting, to take place as soon as possible after the Annual General Meeting, to approve the adoption of a new investing policy to invest in established industry proven technology, media and internet businesses, and to change the company's name to Monchhichi.

“There can be no certainty that the fundraising proposals, as revised, will be finalised and supported by proposed new investors,” the board cautioned.