| Fri 28 Mar 2008, 8:22 | | HUG - Huge - Acquisition Of 25% Of Eyeballs Mobile Advertising (Proprietary) |
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HUG
HUG
HUG - Huge - Acquisition Of 25% Of Eyeballs Mobile Advertising (Proprietary)
Limited ("Eyeballs") And Withdrawal Of Cautionary Announcement
HUGE GROUP LIMITED
(formerly Vanquish Fund Managers Limited)
(Registration number 2006/023587/06)
Share code: HUG & ISIN: ZAE000102042
("Huge" or "the company")
ACQUISITION OF 25% of EYEBALLS MOBILE ADVERTISING (PROPRIETARY) LIMITED
("EYEBALLS") AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
1. INTRODUCTION
Shareholders are advised that in terms of sale agreements signed on 27 March
2008, Huge has acquired 2 500 ordinary shares of R1 each in the share capital
of Eyeballs, representing 25% of the entire issued share capital of Eyeballs,
from The Benson Trust, The 59 Kloofnek Trust and Nathan Lewin ("the sale
transactions") for an undisclosed amount. The effective date of the sale
transactions is 1 January 2008.
2. NATURE OF THE BUSINESS OF EYEBALLS
Eyeballs Mobile is based in Cape Town, and has developed a unique media
platform that delivers rich advertising content to GSM mobile subscriber
handsets in an unobtrusive and non-invasive manner, providing an extremely
attractive alternative to SMS and MMS advertising which are often seen as
spam. The technology developed by Eyeballs Mobile currently has intellectual
property protection that provides it with a significant window of opportunity
in the mobile advertising and media arenas.
The mobile advertising medium has even greater significance in developing
markets where Internet access is still limited. In SA the mobile medium of
cell phones has the ability to reach 80% of the population because of its
pervasive presence as a communication medium. Eyeballs have also developed an
application called Ringads which offers advertisers measurability in terms of
reach, frequency and target audience as well as a cost effective and bandwidth
lean solution. The application will facilitate transactional capability where
the ability to earn revenue for each and transaction is possible.
3. RATIONALE
Huge is of the view that the future prospects of Eyeballs and the synergies
that it offers with existing opportunities within Huge are significant. The
technology developed by the founders of Eyeballs has created a unique
offering, making it a leader and innovator in the mobile media space.
Mobile media is expected to grow exponentially making it an incredibly
lucrative market in the very near future. The acquisition adds another
valuable dimension to the telecommunications-based portfolio of Huge. It
represents the commitment of Huge to augmenting its portfolio of products and
services with value-added new age technologies.
In the 8 months since listing Huge has grown its revenue from early beginnings
as a corporate voice service provider, to its current mix of a well-balanced
portfolio of both consumer and corporate services - with revenues in excess of
one billion rand. Media is the next logical step for Huge, and is perfectly
in line with international trends, where devices are expected to deliver an
enhanced multimedia experience to the consumer.
4. CONDITIONS PRECEDENT
The sale transactions are subject to the following suspensive conditions:
- Completion by Huge of a due diligence investigation;
- The injection of loan funding by Huge into Eyeballs in the amount of
R5 000 000 at Prime over a period of 60 months;
- The entering into of a shareholders` agreement; and
- The entering into of an option agreement in terms of which the vendors
and the remaining shareholders of Eyeballs grant Huge the right but not
the obligation to acquire an additional 15% of the ordinary share capital
of Eyeballs at any time during the twenty four months that follow the
closing date of the sale transactions.
5. DOCUMENTATION
In terms of the Listings Requirements of the JSE Limited and especially with
regard to companies listed on the Alternative Exchange, the transaction is not
categorised, as the total value of the transaction equates to less than 5% of
Huge`s current market capitalisation. This announcement is therefore made for
information purposes only.
The transaction is at arms length and does not require shareholder approval or
a circular to be sent to shareholders.
6. WITHDRAWAL OF CAUTIONARY
Shareholders are referred to the cautionary announcement dated 11 March 2008,
and are advised that as a result of this announcement the cautionary
announcement in relation to this transaction is now withdrawn.
Woodmead
27 March 2008
Designated advisor
Arcay Moela Sponsors (Pty) Limited
Date: 28/03/2008 08:22:59 Produced by the JSE SENS Department.
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