TIDM7DIG
RNS Number : 7247Q
7digital Group PLC
30 June 2022
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
30 June 2022
7digital Group plc
("7digital" or "the Company")
eMusic Live agreement and fundraising
Expanded revenue generating opportunities with music livestream
platform
7digital (AIM: 7DIG), the global leader in B2B end-to-end
digital music solutions, is pleased to announce that it has entered
into an agreement (the "Agreement") with eMusic.com, Inc.
("eMusic") regarding the eMusic Live music livestream platform, a
joint project of eMusic and the Company, which will expand the
Company's revenue-generating opportunities.
The Company also announces that it has entered into an agreement
with Tamir Koch, a director of the Company and a significant
shareholder, for a 13-month loan of GBP500k (the "Shareholder
Loan"). The monies will be used by the Company for working capital
purposes.
eMusic Live
The Company and eMusic launched the eMusic Live platform, which
had been developed and primarily funded by eMusic, in 2020 as a
platform for the live music industry to stage virtual concerts and
create unique artist-to-fan experiences.
Since launch, eMusic Live's livestream platform has achieved a
number of key milestones. The platform has grown to 1.5m unique
monthly visitors, and has hosted world-renowned music superstars,
festivals and events. Notably, eMusic Live has established
relationships and exclusive livestreams with the world's biggest
music and live entertainment companies including AEG presents,
iHeart Media, and Goldenvoice, cementing its position as the
platform of choice to support world-class artists and festivals.
The eMusic Live platform is purpose-built to prioritise the artist
and maximise fan engagement and commercialisation, and is the only
platform that offers livestream and non-fungible token ("NFT")
bundling, allowing fans to buy a ticket, virtual merchandise and
music in one purchase across all currencies.
To date, 7digital has realised revenue through providing the
digital music tracks for download in the eMusic Live experience.
Under the terms of the Agreement, 7digital will now satisfy the
production costs of live events on the eMusic Live platform as well
as provide other support such as marketing, and will receive 50% of
net revenue derived from all activity on the platform, including
sponsorships, video on demand, ticketing and merchandise sales. The
Agreement specifies flexibility that reserves the Company's right
to not participate in funding or revenue share for any particular
event. As a result, the Agreement is expected to broaden 7digital's
revenue streams. In addition, the Board believes that, looking
further ahead, there will be additional revenue opportunities
generated by eMusic Live, such as regarding selling rights to
broadcasts and other streaming platforms.
Fundraising
The Company has entered into an agreement with Tamir Koch, a
director of the Company and a significant shareholder, for a
13-month loan of up to GBP500k. The funds drawn attract interest,
to be rolled up and payable on the date of repayment of the loan,
at 6% above the Bank of England's base rate from time to time. The
loan is unsecured.
Related Party Transactions
Tamir Koch is Non-executive Chairman of the Company and, via
Shmuel Koch Holdings, is interested in 446,512,126 ordinary shares
representing 16.4% of the Company's issued share capital, and is a
director of eMusic. Accordingly, the Shareholder Loan and the
Agreement are each a related party transaction pursuant to Rule 13
of the AIM Rules for Companies.
The independent directors (being the 7digital directors
excluding Tamir Koch), having consulted with Strand Hanson as the
Company's nominated adviser, consider the terms of the Shareholder
Loan and the Agreement to be fair and reasonable insofar as the
shareholders are concerned.
Paul Langworthy, CEO of 7digital, said: "We are delighted to
have extended our partnership and have greater control and
involvement in eMusic Live. This joint project has matured over the
past 12 months and has positioned itself as the only livestreaming
platform to focus solely on musical events combined with artist
monetisation opportunities. This agreement will help us to expand
our reach in the music industry, diversify our revenues into new
verticals and enables us to offer a broader and more comprehensive
suite of services to the music industry, our clients and
artists."
Tamir Koch, Chairman of 7digital and President of eMusic, added:
"My firm belief is that now is a window of opportunity to grow a
business specifically for the music industry and suited for how
consumers are now engaging with music. Over the past two years, the
music industry has been going through a transformation, and the
emergence of new digital platforms and formats and technology has
aided this. It is not just about ticket sales that you see in
traditional streaming platforms. Our advanced technology platform
allows the artists to distribute, promote and monetise their music
beyond this with direct-to-fan opportunities such as merchandise
and NFTs. With the deepening of this relationship, it moves eMusic
Live towards becoming the leading provider of artist monetisation
services globally."
For further information please contact:
7digital Group plc
Paul Langworthy c/o +44 (0)20 7618
9100
Strand Hanson Limited (Nominated and Financial
Adviser)
Richard Johnson, James Harris, James Bellman +44 (0)20 7409 3494
Arden Partners plc (Broker)
+44 (0)20 7614
Ruari McGirr 5900
Luther Pendragon (Financial PR)
Harry Chathli, Claire Norbury +44 (0)20 7618 9100
7digitalIR@luther.co.uk
About 7digital
7digital is the global leader in B2B end-to-end digital music
solutions, providing a scalable cloud-based platform that enables
companies and brands to connect to its global music catalogue and
rights management system to launch and manage unique and engaging
music experiences. Operating worldwide in over 80 markets and
integrated with more than 300,000 labels and publishers, 7digital's
platform automates the complex and time-consuming processes of
music management, making it easier to access and use music in
streaming services, social media, home fitness, gaming, retail and
more. With best-in-class infrastructure, deep industry expertise
and intelligence tools, 7digital empowers their clients to
innovate, grow and serve tomorrow's music consumer. For more
information, visit http://www.7digital.com/ .
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