Interactive Publishing Plc
LSE : INTP

May 25, 2010 09:26 ET

Disposal of Subsidiary and Proposed De-listing

25 May 2010


                                    INTERACTIVE PUBLISHING PLC
                          Disposal of Subsidiary and Proposed de-listing

Disposal

Further  to  their  announcement  on  17  May  2010,  the  Board  of  Interactive  Publishing  Plc
("Interactive"  or  the  "Company") announces that their distributor  Magazine  Marketing  Company
Limited ("MMC") has gone into administration.

In order to generate cash funds and to clear the Company's debt with Barclays Bank Plc (secured by
debenture) and to remove substantial costs and debts from the group, on 21 May 2010 the  Directors
sold  Vitality  Publishing Limited (VTL), the subsidiary which publishes "Attitude"  and  "Women's
Fitness" magazines.


The consideration from Financial One Securities Limited for the entire issued share capital of VTL
was  £421,616, of which £200,000 was satisfied by cash on completion, £90,000 was satisfied by the
assumption  by  the  purchaser of the Company's liabilities in respect  of  outstanding  unsecured
convertible  loan  notes  issued by the Company to Griffin Two Limited  on  25th  April  2008  and
£131,616  by  the  assumption of the deferred subscription liabilities relating  to  the  specific
titles taken over but owed by Trojan Publishing Limited.

Griffin  Two  Limited, of which Vince Nicholls is a director holds 13,109,762 shares, representing
7.79% of the Company's issued share capital.

The  turnover  and profit before tax attributable to the assets of VTL in the year ended  30  June
2009 were £2,530,148 and £38,658 respectively.


Proposed De-listing

In  light  of  the  events above, the directors of Interactive Publishing Plc announce  today  the
Company's intention to withdraw its securities from the PLUS Market.

Under the PLUS rules, the Company is required to give shareholders a period of 10 business days to
object  to the intended withdrawal of its securities from PLUS Market. Any shareholder wishing  to
raise an objection should contact PLUS in confidence by 8 June 2010.

The  reason  for the withdrawal is the Company's lack of resources following confirmation  of  the
administration  of  Magazine Marketing Company Limited (the distributor for the  Company's  wholly
owned trading subsidiaries) resulting in a substantially material loss of  cash flow for the Group
as  set  out  in  the announcement dated 17 May 2010. Accordingly, the Directors are  seeking  the
advices of an insolvency practitioner and expect the subsidiaries to cease trading imminently.

The  Company's  share register will be maintained at the registered office, Third Floor,  207  Old
Street, London, EC1V 9NR.



THE DIRECTORS OF THE ISSUER ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

---ENDS---

CONTACT DETAILS:

Interactive Publishing plc
Justin Sanders, CEO                                Tel: 0207 608 6300

Fisher Corporate Plc
Gary Miller                                        Tel: 0207 388 7000

Contact Information

  • Interactive Publishing Plc