8 February 2012 – acquisition
The group has acquired just over £3.0m of Convertible Loan Notes in DCD Media, the AIM-listed independent TV production and distribution group from a number of institutional investors. The cost of the investment is just over £2.0m. Just over £2m of the The Loan Notes convert into DCD shares at a price of 18p, with the remainder converting at 1p. The current DCD price is around 5p. The Notes mature in October this year and can be repaid or converted at DCD’s option. It would seem likely that the cheap options will be repaid in cash with the larger tranche being converted into shares. This is an unusual move in our view but we will await developments. In the meantime the shares of Timeweave continue to look GOOD VALUE.