MCC Global N.V.
08:25 11.06.08
Miscellaneous
MCC Global N.V.: Chairman’s Trading Statement
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The issuer is solely responsible for the content of this announcement.
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MCC Global NV
Chairman’s Trading Statement
MCC Global NV ('MCC' or the 'Company') (FRANKFURT: IFQ2), the global
private equity investment and advisory company, today released the
following trading statement by Anthony Moore, the Chairman of the Company’s
Supervisory Board:
MCC GLOBAL NV MOVING AHEAD
The challenges of the reverse takeover of IFEX (now renamed MCC Global NV)
and the listing of the shares from that transaction on the Frankfurt Stock
Exchange have been well documented and widely discussed in the investment
community. The operation took far longer than anticipated and burdened our
Company with unexpected and substantial transaction costs. The uncertainty
created by the prolonged nature of the reverse takeover and approval of the
listing prospectus were also a significant distraction for senior
management and business development in general. This led to a decline in
new business and, therefore, overall Company revenues.
Your Supervisory and Management Boards have, post the April 25, 2007
reverse takeover, devoted their efforts to restoring MCC Global to
financial health and reinvigorating the business development process with a
view to returning to a period of revenue and profitable growth. While
there are still challenges to be met, significant and welcome progress has
been made during the course of the past year.
Firstly and very importantly, monthly operating costs of your Company have
been reduced by more than 50% during the first four months of this year as
compared to 2007. Non-productive areas of the business have been axed or
cut back, and strict cost controls have been implemented. We believe that
such measures will provide a sound foundation from which to restore
profitability and earnings going forward. Secondly, debt is being reduced
via asset disposals and conversion of debt to equity which we have noted in
prior releases. We are intent on bringing debt levels down to manageable
levels during the course of the current year. Our shareholders will
continue to receive regular updates on our progress in this important area.
We are also well aware that investors are concerned by the delays in
publishing the consolidated financial statements of MCC Global. The
acquisition of an American company (Moore, Clayton & Co., Inc) with
international offices and operations by a Dutch company (IFEX) listed on
the Geregeltmarkt of the Frankfurt Stock Exchange has provided our auditors
and legal counsel with a complex project and considerable challenges. In
January of this year, we published the IFEX 2006 financial statements and
are working closely with our auditors with a view to publishing the 2007
consolidated MCC Global accounts within the next two months. While we
remain optimistic about the future of MCC Global, we note to shareholders
that 2007 operating results will reflect the increased expenses, decreased
revenues, and decline in asset values for 2007 that stem primarily from the
difficulties of the reverse takeover. We apologize for the delay in
publishing these financial statements and understand the uncertainty that
this has created in the marketplace. However, I would wish to assure our
shareholders that, although our financial results for 2007 will not be
attractive, the delays are simply an administrative and resource issue
resulting primarily from the reverse takeover and associated transitional
issues.
We are excited about the recent strong improvements in our client advisory
and investment management activities. As you are aware, the MCC Global
business model is focused on advising, building and investing in growth
businesses. We see no reason to change our objective of being a pre-eminent
GLOBAL PRIVATE EQUITY ADVISORY AND INVESTMENT company. Indeed we see
significant renewed interest in investing in the sector in which we have
specialized for the past 10 years and believe we are well placed to take
full advantage of this phenomenon. Our business is composed of three
distinct but closely interlinked legs---ADVISORY, CORPORATE FINANCE, AND
INVESTMENT MANAGEMENT. Advisory is responsible for identifying and
developing investment opportunities in the sectors in which we have
industry experience and expertise; Corporate Finance is responsible for
funding and exiting said opportunities; and Investment Management provides
access to investment capital. We believe this A to Z approach or the
'integrated solution' is very appropriate for the emerging growth private
equity arena with our focus on preserving and capitalizing on the high
returns offered whilst doing everything possible to reduce the risks. This
produces a win/win situation for our clients, our investors and for
shareholders in MCC Global.
Specifically, within the Advisory business, the new MCC Hospitality has got
off to an auspicious start under Sharon Clayton’s leadership with some
exciting deals close to signature. The transactions that we are focusing on
in our Advisory business will tend to be larger with higher associated
revenues than has been the norm for our emerging growth sector activities.
Shareholders will be receiving news on progress in this new and important
activity in the weeks to come. In the Corporate Finance business, we are
heavily involved in two client listings, one of which, ZeroWaste Systems,
an exciting waste management business, is planned for a listing on the
London AIM within the next few months, possibly to be followed with the
Frankfurt Stock Exchange. We are also in financing and exit mode with six
other companies, both in the USA and Europe. MCC Global receives fees from
such advisory and financing activities and in particular has an attractive
equity holding in each of the situations which will be realized at the
appropriate time.
We are particularly pleased by the development of our Investment Management
business. Our shareholders will have noted the Moore Clayton Capital
Advisors, Inc. (MCCA) investment advisory agreement with Equus Total Return
Inc., was recently renewed and we have plans, under the leadership of
Kenneth Denos ( Equus and MCC Global CEO), to grow the size of this New
York Stock Exchange-listed fund. We are also close to a first closing of
the MCC Global Emerging Growth Fund which is being placed with high net
worth individuals in the United Kingdom. We are preparing documentation,
test marketing, and are laying the groundwork for two other funds that we
intend to launch before the end of 2008. We intend to keep shareholders
apprised of this expanding area of our Company. Suffice it to say that we
have big plans for our Investment Management business which capitalizes on
MCC Global’s ability to select and advise growing companies, which results
in steady fee income, attractive incentive fess, carried interests and
access to new advisory and corporate finance business.
We hope to shortly inform shareholders about the successful development of
other new business initiatives in Europe and the Middle East in the area of
wealth management. We will also be looking to expand our activities in
Germany and Eastern Europe. Presently, we are looking to make an
investment in a local German entity with similar activities to our own, or
to form a meaningful joint venture or partnership. MCC Global will
contribute its global network and activities to the German partner, who
will in turn contribute its access to and activities in the local market.
Lastly but very importantly, we take investor relations very seriously but
realize that our German-based investors are not receiving the regular type
of information flow that they require and frankly deserve. We are in the
process of correcting this lacuna and will shortly announce the appointment
of specialist investor and public relations experts based in Germany. We
want our shareholders to be well informed of the progress being made by
your Company as we resume our path to growth and recovery.
In summary, it’s been a very difficult two years but we are now
experiencing a renewed enthusiasm for our business, greatly improved morale
and a steady increases in new business and new activities. Yes, there are
still challenges for us to meet and address but we have a renewed
confidence in our business which we are convinced will lead to the creation
of shareholder value and an appropriate recognition of the value of MCC
Global in the investment marketplace.
I would like to thank you for your continued support of MCC Global and
express my and the Supervisory Board’s appreciation for your patience and
loyalty as we move your Company back to a growth-oriented path.
About MCC Global
MCC Global NV is a global private equity investment and advisory company
specializing in providing strategic and financial advisory and investment
services to emerging and established companies in specific industry sectors
such as healthcare, energy renewables, media, real estate, and hospitality
and lifestyle. MCC Global NV (www.mccglobal.com) is listed on the
Frankfurt Stock Exchange Geregelter Markt (General Standard), ticker IFQ2.
This press release may contain certain forward-looking statements regarding
future circumstances. These forward-looking statements are based upon
current expectations and assumptions of MCC Global N.V. (the 'Company') and
are subject to various risks and uncertainties that could cause actual
results to differ materially from those contemplated in such
forward-looking statements including, in particular, the risks and
uncertainties described in the Company’s most recently filed prospectus and
other public filings. Actual results, events, and performance may differ.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date hereof. The Company undertakes
no obligation to release publicly any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events. The
inclusion of any statement in this release does not constitute an admission
by the Company or any other person that the events or circumstances
described in such statements are material.
Enquiries:
MCC Global
Dana Smith,
Investor Relations
Email: ir@mccglobal.com
GTH Media
Tel: 020 7153 8039/8035
Toby Hall/Christian Pickel
toby@gth.co.uk; christianp@gth.co.uk
(c)DGAP 11.06.2008
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Language: English
Issuer: MCC Global N.V.
Keizersgracht 62-64
1015 CS Amsterdam
Niederlande
Phone: +31 20 520 6826
Fax: +31 20 520 7510
E-mail: ir@mccglobal.com
Internet: http://www.mccglobal.com
ISIN: NL0000687705
WKN: A0LFAF
Listed: Regulierter Markt in Frankfurt; Freiverkehr in Berlin,
Stuttgart, Düsseldorf
End of News DGAP News-Service
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