.London deal, plans share buyback — MMX settles
Firm can finally put .London fiasco behind it.
MMX, aka Minds + Machines Group Limited (AIM: MMX), disclosed preliminary results for the first half of 2019 today. It also made two big announcements.
Cash inflows in the half were $8.6 million compared to $6.3 million in the same period last year. The firm received $1.6 million from losing top level domain auctions. It also states that the ICM Registry portfolio of domains (adult domains counting .xxx) has stabilized and the firm believes it can make them grow going forward.
Looking beyond the numbers, MMX made two big announcements.
First, it has made an agreement on one “legacy contract” that ought to settle it once and for all. While the firm doesn’t identify which TLD the contract covers, it’s an open secret that it’s .London.
The firm will make a one-time payment of $5.1 million to cover all of its liabilities on the .London contract. That’s better than its current estimated liability of $7.9 million. .London will go down as one of the worst fresh TLD deals ever, and having it behind the firm will be a big boost.
Second, the firm is going to use up to £1 million of its cash reserves to buy back shares. This ought to help put a floor on the share price for a while. Shares have traded at regarding 5.0-6.5 pence for the past six months.
