| Optimistic Entertainment plc commenced trading on the Alternative Investment Market (AIM) on 19th January 2005 as a result of its admission to AIM following completion of a reversal of our TV channel business, The Optimistic Network Ltd, in to Willow Partners Plc. Through this process the Group raised £3.7m. Upon listing a total of 34,289,160 new ordinary shares, representing 6.4% of the companies enlarged share capital, were placed with institutional and other investors at a price of 5p.
Subsequently, the Group raised a further £0.2 through a placing of 4,962,406 new ordinary shares and an additional £0.6 from the issue of a further 18,609,023 new ordinary shares, arising from conversion of a sum drawn down against an existing working capital facility.
On 12 September 2006 the Group consolidated its share capital on the basis of one new ordinary share of 5 pence in the Company for every twenty ordinary shares of 0.25 pence held in the Company.
In January 2006, the company set up Optimistic Media Ltd to focus on external productions as we saw a significant growth opportunity to take our expertise to third party broadcasters. The company has been successful in establishing its product offering in the UK, France and the United States and seeks to grow its revenues by increasing the number of production contracts it manages at any one time and through continued geographic expansion.
In June 2006 Optimistic Entertainment plc agreed to subordinate the debt owed to it by The Optimistic Network Ltd (TON) and to support a CVA arrangement to pay TON’s outstanding liabilities. The Group expects to have honoured its initial commitments by the end of October 2006 and TON continues to operate the Bonanza channel on Sky and a broadcast window on Life 2, also on Sky.
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