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Media Corp Ceases Trading

Tuesday August 27,2013 : ONLINE GAMBLING GROUP CEASES TRADING
 
Media Corp bedevilled by "legacy" issues over Purple Lounge Poker meltdown...shelves Intabet initiative.
 
The many aggrieved players impacted financially by the Purple Lounge Poker meltdown last year  will perhaps view with some satisfaction the failure of parent group Media Corp plc despite questionable corporate manoeuvring and new management.
 
This week Media Corp issued a stock exchange notification advising that the company "...lacks the funds to continue without material investment" and has ceased trading, shelving its plans for the Intabet venture.
 
Chairman Phil Jackson said the directors of the company have completed a protracted review of Media Corp's current operations and prospects, concluding that the impact of increasing technology, hosting and operating charges on the company's limited financial resources, coupled with its inability to obtain an appropriate gaming license are proving prohibitive to the launch of the Intabet platform.
 
"The Directors believe that continued development of Intabet would prove a drain on the company that it cannot sustain in the absence of meaningful revenues or investment," said Jackson.
 
"Together with continued legacy issues facing the company taking up substantial amounts of management time detracting their attentions from the operating business, the directors have taken the difficult decision to cease development and operation of the Intabet platform and substantially all of the company's trading business."
 
Jackson went on to reveal that Media Corp will not be in a position to deliver the much-hyped betting platform to Box Nation, but said that Goal Millions will continue to operate under licence through Vamagaming. However, with next to no promotional budget, its contribution to the company's revenue stream is expected to be negligible.
 
"With Media Corp now having ceased substantially all of its trading business the company will now become an investing company under rule 15 of the AIM Rules for Companies," said Jackson in informing shareholders of his future plans.
 
"In doing so, the company must adopt an investing policy which will be subject to shareholder approval at a general meeting. Following the adoption of an investing policy it is likely that the company will dispose of its interest in Intabet and its associated intellectual property."
 
In what seemed to be an attempt to placate shareholders, Jackson said that since its suspension on the AIM exchange, Media Corp has been approached by a number of parties with proposals for the company that might represent better prospects for the shareholders.
 
"It is with this in mind, and one proposal in particular which would bring with it new directors and strategic investment, that the directors have taken this [cessation of trading] action. The directors believe the continuation of the existing business is no longer viable without material investment, the absence of which would risk the solvency of the company," Jackson said.
 
Notice of a general meeting detailing the proposed investing policy will be sent to shareholders in due course and a further announcement made at that time.
 
The circular will also outline resolutions to reorganise the share capital of the company and increase the authorities to allow it to allot shares for cash, enabling it to raise sufficient funds to begin implementing the investing policy.
 
The long delayed financial report and accounts for the period ended 30 September 2012 and the interim accounts for the period ended 31 March 2013 will be furnished prior to the general meeting, which will take place on September 16 2013 in London..



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