GVMH has issued the following clarification.
On 6 December 2018 SMI Holdings Limited (“SMI”), a cinema operator and deployment partner of GVMH, made an announcement on the Hong Kong Stock Exchange.
SMI announced that it was short of sufficient working capital to support its business operations. As a result, around 140 of the 320 cinemas operated by SMI have temporarily suspended operations, of which around 11 may be closed in the near future. SMI is pursuing its refinancing arrangements.
GVMH currently has 44 panels installed in SMI cinemas. We confirm that none of the panels are in any of the temporarily suspended sites or at those sites marked for closure. We further confirm that we continue to receive new advertising orders including for those panels located at the SMI cinemas.
GVMH is currently reviewing the situation with respect to SMI and will provide an update on any actions that we may implement as a result. The problems at SMI are not expected to have any material impact on GVMH’s business model. We confirm that we are not owed any monies by SMI. As stated above, SMI is a deployment partner, not a customer of GVMH. GVMH continues to manage its current portfolio of cinema locations to maximise audience reach, and is continuing the rollout of panels to other cinema locations.
The full SMI announcement can be viewed here
http://www.smi198.com/attachment/2018120623020100003345138_en.pdf
**ENDS**
For further information, photos and enquiries please contact:
Grand Vision Media Holdings plc
Jonathan Lo / Ajay Rajpal
info@gvmh.co.uk
Tel: +44 (0) 20 7866 2145
Alfred Henry Corporate Finance Ltd, Corporate Advisor
Nick Michaels / Jon Isaacs
enquiries@alfredhenry.com
Tel: +44 (0) 20 3772 0021
Alexander David Securities Ltd, Broker
David Scott
david.scott@ad-securities.com
James Dewhurst
james.dewhurst@ad-securities.com
Tel: +44 (0) 20 7448 9820
Keene Communications, Public Relations
Alex Glover
alex@keenecomms.comTel: +44 (0) 7887 610335