Multivision Communications Corp. V.MTV

REDEMPTION

[Vangelis]

Multivision to redeem Class A, Class B preferreds
Ticker Symbol: C:MTV
Multivision to redeem Class A, Class B preferreds
Multivision Communications Corp (C:MTV)
Shares Issued 13,231,455
Last Close 8/5/2010
.015
Friday August 06 2010 - News Release
Mr. Altaf Nazerali reports
MULTIVISION ENTERS INTO PREFERRED SHARE REDEMPTION AGREEMENT
Multivision Communications Corp. has entered into a preferred share redemption agreement with Multivision's Class A and Class B preferred shareholders, being Cristal Delaware LLC, 21st Century Communications T-E Partners LP, 21st Century Communications Foreign Partners LP, 21st Century Communications Partners LP and Douglas E. Schimmel. In total, the preferred shareholders are the registered and beneficial owners of 7,081,060 Class A preferred shares and 1,544,710 Class B preferred shares.
Pursuant to the terms and condition of the agreement, Multivision will redeem the preferred shares in exchange for the assignment and transfer to the preferred shareholders of all the issued and outstanding shares of Multivision Investments Inc. (MII), a Barbadian wholly owned subsidiary of Multivision, which indirectly owns Multivision SA, Multivision's Bolivian operating corporation. The assignment and transfer of the MII shares will satisfy Multivision's obligations to the preferred shareholders to redeem the preferred shares. The MII shares will be allocated to the preferred shareholders pro rata to their holdings of preferred shares. The transaction is subject to shareholder and regulatory approval.
"Multivision has not generated net income from its Bolivian operations to date and it is unlikely that it will do so in the future," stated president and chief executive officer, Altaf Nazerali. "The Dec. 31, 2009, audited financial statements reported a working capital deficiency of approximately $52-million and an accumulated deficit of approximately $70-million. This transaction will settle all of Multivision's obligations with respect to the preferred shares. The transaction will not affect the holders of Multivision's common shares. Upon completion of the transaction, Multivision will have no business or assets, and it is anticipated that the trading of its common shares will continue on the NEX board of the TSX Venture Exchange," explained Mr. Nazerali.
A special meeting of Multivision's shareholders is expected to be held in Vancouver in September, 2010, to obtain necessary shareholder approval of two-thirds of Multivision shareholders present in person or by proxy voting at the special meeting. A management information circular, containing details of the agreement, is expected to be mailed prior to Sept. 2, 2010.
Completion of the proposed transaction is subject to a number of conditions including TSX Venture Exchange acceptance and disinterested shareholder approval. The proposed transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the proposed transaction will be completed as proposed at all.
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