Media Corporation – Cessation of Business
One of the first “problem” companies that ShareSoc reported on (and got involved with to a limited extent, although it always appeared to be somewhat of a basket case) was Media Corporation (MDC). We first covered it in our June 2011 newsletter when the share price was about 1.5 pence. After various changes of strategy and management upheavals, the shares were suspended from AIM (not for the first time) in April at 0.095 pence, after much dilution from new share issuance in the meantime. That implied a market capitalisation of £1.2m, so you can see why the AIM listing might be more valuable that the operations of the company.
On Friday 23rd August, at 5.45 pm, the company announced with the headline “Cessation of Business” that it was disposing of its remaining operating businesses and transmogrifying into an investment company – to be called Leopard Oil Plc. Yes it will be focussing on “oil and gas opportunities”, which sounds like even more speculation.
It’s always a good time to make a major announcement after the market has closed and just before a bank holiday is it not? Although with the shares suspended it may not matter a great deal. But this is what one might expect from past goings-on at this company.
The company’s previous activities have been primarily in the gaming sector, and they had been working on a new platform called “Intabet” but they report that this has proved beyond their financial resources to launch. They also have “legacy issues” apparently, without spelling out what they are.
A General Meeting to approve the proposed change of direction has been called for the 16th September. It should be an interesting meeting for anyone still holding shares in this company.