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Thursday, June 14, 2012

TMT Investments – Investment in Wrike

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14th June 2012

Analyst: Emanuil Halicioglu
Email: emanuil.halicioglu@gecr.co.uk
Tel: 0207 562 3368



TMT Investments – Investment in Wrike

Key Data

EPIC

TMT

Share Price

$1.45

NMS

3,000

Spread

$1.43 - $1.47

Total no of Shares

24.64 million

Market Cap

$35.74 million

12 Month Range

$0.93 - $1.46

Market

AIM

Website

Contact

Alexander Selegenev
Executive Director
01534 281 843


TMT Investments has made a $1 million investment in US-based Wrike as it looks to gain exposure to the fast-growing project management and collaboration software market. As the venture capitalist continues to build a high quality and diversified portfolio of investments in companies that operate in high growth, internet-based sectors, we remain of the belief that it has the potential to generate an attractive rate of return for shareholders.

Wrike

Wrike (www.wrike.com) is a full-featured and easy-to-use online business collaboration platform that connects tasks, projects, discussions, documents and other work-related information in one cloud-based workspace, in which teams of any size can productively collaborate. Founder and chief executive officer Andrew Filev has extensive knowledge of the software arena, having launched his first software company at age 18 and quickly growing it into a thriving international business.

For the year ended 31st December 2011, the group reported a net operating profit of $39,441, and net assets of $24,327. The group has experienced year-on-year triple-digit revenue growth.

Investment details

TMT has made a $1 million investment in Wrike, which consists of a 12-month unsecured convertible promissory note at 8% per annum. Under the terms of the agreement, the outstanding principal and unpaid accrued interest of the note will be automatically converted into Wrike’s equity securities upon the earliest of the next qualified equity financing or a change of control in Wrike. Unless converted earlier, the outstanding principal and unpaid accrued interest of the note will be automatically converted at maturity into Wrike’s equity securities for a fully-diluted equity valuation of $16 million. Furthermore, TMT Investments will have the right to purchase Write’s equity securities sold in the next equity financing.

Market opportunity

Wrike is currently being used by thousands of customers (Source: company), including some very well known brands, such as ECCO, Deloitte, Adobe, EMC and Stanford University. However, as more and more people are made aware of this easy-to-use business collaboration platform, we feel that the number of users will increase significantly. In fact, with businesses and individuals always on the lookout for productive and cost-efficient systems to manage their work-tasks, projects and teams, we believe that the potential market here is huge.





This research note cannot be regarded as impartial as GE&CR has been commissioned to produce it by TMT Investments . It should be regarded as a marketing communication.

The information in this document has been obtained from sources believed to be reliable, but cannot be guaranteed. Growth Equities & Company Research is owned by T1ps.com Limited which is commissioned to produce research material under the GE&CR label. However the estimates and content of the reports are, in all cases those of T1ps.com Limited and not of the companies concerned.

This research report is for general guidance only and T1ps.com Limited cannot assume legal liability for any errors or omissions it might contain.

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