TLDH (Minds + Machines) Gets Additional $15M In Funding For New gTLD Auctions
According to a press release we were sent today by Top Level Domain Holdings Limited (AIM:TLDH), better known to the domain community as Mind + Machines, the Company “has agreed a funding facility to support its participation in a prospective auction in relation to a specific contested gTLD application”.
“The conditional funding will be provided solely in exchange for a perpetual share in the gross revenue generated by the gTLD string so funded (“Auction gTLD”) should the Company be successful in the auction”.
“Under the funding agreement, TLDH has the right to call up to US$10m, to be used exclusively to acquire from ICANN the right for the Company to own and operate the Auction gTLD”.
“The funding provider has the right to increase its funding by up to a further US$5m”.
“The funding provider’s participation will be limited to a share of the gross revenues from the future operation of the Auction gTLD. ”
“The funding is not repayable other than through the gross revenue share. TLDH will retain sole management rights and responsibilities in the running of the Auction gTLD.
Fred Krueger, executive chairman said:
“We believe that this funding model provides an attractive way to secure the resources to participate in an auction of those contended strings that we believe have significant revenue potential, while at the same time avoiding dilution to our shareholders”.
TLDH is one of the largest new gTLD applicant with 72 new gTLD applications.