TIDM7DIG
RNS Number : 3778A
7digital Group PLC
23 September 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.
23 September 2022
7digital Group plc
("7digital" or "the Company")
Fundraising and Directorate Change
7digital (AIM: 7DIG), the global leader in B2B end-to-end
digital music solutions, announces that it has raised GBP500,000 in
the form of a loan from a significant shareholder (the "Shareholder
Loan").
The Company also announces the appointment of Mark Foster, who
has been a Non-executive director of the Company since April 2015,
as Interim Chairman following the resignation of Tamir Koch, with
immediate effect, who is stepping down from his role as Chairman to
focus more time on the development of eMusic Blockchain. Tamir Koch
will remain on the Board as a Non-executive director.
Fundraising
The Company has entered into an agreement with Magic Investments
S.A. ("Magic"), a significant shareholder represented by David
Lazarus who is a director of the Company, for a loan of
GBP500,000.
The key terms of the Shareholder Loan are:
-- Repayable on or before 1 October 2023
-- Interest at 5% (five percent) per annum, payable on a quarterly basis
-- The Principal Amount will be repayable in one lump sum on the Repayment Date
-- The loan is unsecured
The funds will be used by the Company for working capital
purposes and to fully repay the GBP50,000 previously drawn on the
loan from Tamir Koch, announced on 30 June 2022.
Paul Langworthy, CEO of 7digital, said: "We are pleased to have
secured this financing, which will primarily be used for working
capital purposes. I'd like to extend my thanks to David on behalf
of myself and the executive team for his trust and support.
"I'd also like to thank Tamir for his advice and support
throughout his tenure as Chairman. He has made a tremendous
contribution to the development of the business, and I am pleased
that he remains on the Board and we retain access to his experience
and expertise. We are delighted that Mark has agreed to take on the
role of Interim Chairman, while we conduct the process to appoint a
permanent chairperson. He has been working with 7digital for over
seven years and, combined with his significant industry experience,
I am confident he will bring a lot of value in his role as
Chairman."
Mark Foster, Interim Chairman of 7digital, added: "7digital has
done some exceptional work in seizing the growth opportunities in
music licensing in fitness & wellness and social media, and
establishing itself as a leading music platform for brands. Yet I
am sure it is only a small fraction of what the Company will
achieve in the future. I look forward to continuing to work with
the 7digital team to deliver further growth and drive shareholder
value."
Background on Mark Foster
Mark has been a Non-executive director of the Company since
April 2015. He has spent much of his career in the music industry,
in a succession of marketing and international roles for all three
major labels, including time in Paris as Marketing Director for
Warner Music France. Returning to London as Vice President of
European Marketing, Mark oversaw pan-regional marketing strategy
before founding Warner Music International's New Media Division.
After leaving Warner, he launched and ran Deezer in the UK and
Ireland, then was appointed CEO for Arts Alliance, a leading global
player in Event Cinema. Since 2015, he has developed a portfolio of
Non-executive director and chair roles for a range of businesses,
including highly respected entertainment analysts MIDiA Research,
and has led the digital transformation strategy for Moat Homes, a
major Housing Association. In addition, he acts as advisor and
brand ambassador for a number of start-ups and scale-ups in the
digital entertainment and creative industries.
Related Party Transaction
David Lazarus is a Non-executive director of the Company and,
via Magic, is interested in 742,436,219 ordinary shares
representing 27.3% of the Company's issued share capital.
Accordingly, the Shareholder Loan is a related party transaction
pursuant to Rule 13 of the AIM Rules for Companies.
The independent directors (being the 7digital directors
excluding David Lazarus), having consulted with Strand Hanson as
the Company's nominated adviser, consider the terms of the
Shareholder Loan to be fair and reasonable insofar as the
shareholders are concerned.
For further information please contact:
7digital Group plc
Paul Langworthy c/o +44 (0)20 4582
3500
Strand Hanson Limited (Nominated and Financial
Adviser)
Richard Johnson, James Harris, James Bellman +44 (0)20 7409 3494
Arden Partners plc (Broker)
Ruari McGirr +44 (0)20 7614 5900
Gracechurch Group (Financial PR)
Harry Chathli, Claire Norbury +44 (0)20 4582 3500
7digitalIR@gracechurchpr.com
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/ .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
BOABKBBPFBKDOCB
(END) Dow Jones Newswires
September 23, 2022 02:01 ET (06:01 GMT)
7digital (LSE:7DIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
7digital (LSE:7DIG)
Historical Stock Chart
From Apr 2023 to Apr 2024
