Media Corp taps investors
Article Date: Jan 28 2010Media and on-line gaming concern Media Corp has raised £870,000 from an unnamed shareholder and others to pursue takeover opportunities.
Institutions Octopus and Gartmore have subscribed to the placing by the London-based company, which is understood to be interested in buying licences from Isle of Man-based Microgaming, the leading on-line gaming software developer. Entrepreneur Justin Drummond, chief executive officer of AIM-quoted Media Corp, has hailed a return to profits after buying on-line casino and poker operator Purple Lounge and says it is now ‘well positioned to pursue earnings-enhancing acquisitions’.
He has been striving to return the company to profitability after the US ban on on-line gaming knocked its key American acquisition for six and says new customers are now coming in droves. At the placing price, Media Corp will make a £160,000 profit on the funding, since it is releasing ‘treasury’ shares bought in a buy-back from investors.
Floated at 10p 10 years ago, Media Corp shares slumped to 0.63p last year. Highlighted by Growth Company Investor at 1.45p in October and again at 3.15p earlier this month, they have now reached 3.25p, valuing the company at £8.7 million, and could rally further if progress is maintained.
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