YOLO Leisure & Technology PLC Update re Investment (6323Y)
December 07 2017 - 2:00AM
UK Regulatory
TIDMYOLO
RNS Number : 6323Y
YOLO Leisure & Technology PLC
07 December 2017
YOLO Leisure and Technology plc
("YOLO" or the "Company")
Update re Magic Media Works
YOLO is pleased to announce that its investee company, Magic
Media Works Ltd ('Magic'), has received commitments of GBP1.46
million from existing and new investors towards an intended GBP2
million new round of financing.
In addition, Henrik Holmark, previously the CFO of Pandora
Jewellery, has invested GBP650,000 in this fund raise and will join
the Magic board as a non-executive director.
The fund raise follows the launch of ROXI, the new 5-in-1 music
entertainment device, which brings Unlimited Music, Karaoke, Music
Games and other family friendly features to consumers in the UK and
USA. Funds will be used to continue the development and rollout of
ROXI and related products and services in 2018.
YOLO has taken the strategic decision not to invest additional
capital into Magic at this time. Further, as the largest
shareholder in Magic, YOLO has agreed to release some of its shares
in Magic and its anti-dilution rights to acquire additional shares
in Magic to new investors for nominal consideration in order to
assist Magic in completing the fund raise and so help it to achieve
its goals and potential. The board of Magic has confirmed to YOLO
that the provision of this support by the Company has been
instrumental in allowing Magic to move forward to the successful
completion of this funding round.
The GBP2 million fund raise (assuming subscription in full) will
comprise the issue of up to 2,822,646 new ordinary shares in Magic
and the transfer of 1,026,979 ordinary shares in Magic currently
held by YOLO to the company and investors. The Magic ordinary
shares are being acquired by the investors at a price of 50.8p per
ordinary share. On completion of the GBP2 million fund raise, there
will be up to 8,831,975 Magic ordinary shares in issue.
Following completion of this round of funding YOLO will remain a
significant shareholder in Magic with a shareholding equal to
1,646,682 ordinary shares in Magic (representing 18.6 percent of
the issued share capital of Magic, subject to the GBP2.0 million
fundraise completing) and options over a further 95,000 ordinary
shares.
YOLO will retain representation on the Magic board. Henrik
Holmark will own 13.4% and Rob Lewis, the company founder, will own
26.8%. The terms of YOLO's outstanding convertible loan note of
GBP500,000 as announced on 5 June 2017 remain unchanged.
Completion of the fund raise will enable Magic to start the New
Year with a strengthened Board, new product initiatives to roll out
in both the US and UK territories and, crucially, new funding to
help it to execute its development plans.
Magic has recently launched its new ROXI home entertainment
system and invested into a new marketing campaign in the UK and
USA. The original product has been significantly upgraded, with
initial sales in the US and UK generating positive feedback from
retailers. A pipeline of new product additions is also in
place.
YOLO now plans to further build out its strategy as an
investment business, and continue to seek new investments in
accordance with its investing policy and explore possible reverse
takeover opportunities if certain criteria are met.
Simon Robinson, Chief Executive Officer of Yolo, said:
"YOLO is delighted that Magic Media Works has secured new
funding and that Henrik Holmark, previously CFO of Pandora, one of
the world's best known global jewellery brands, has joined the
board and taken a material shareholding. Magic is now well
positioned to execute its plans and new product initiatives in
2018.
"We will now focus on further growth opportunities for YOLO as
an investment company, with both the existing portfolio and also
continue to consider new investments, including those that may
constitute reverse takeovers under the AIM Rules."
YOLO Leisure and Technology plc
Simon Robinson simon.robinson@yoloplc.com
Cairn Financial Advisers LLP
Sandy Jamieson, Emma Earl Tel: +44 20 7213 0880
Peterhouse Corporate Finance Limited
(Sole broker)
Duncan Vasey / Lucy Williams Tel: + 44 20 7220 9797
Walbrook PR Ltd Tel: +44 20 7933 8787 or
yolo@walbrookpr.com
Paul McManus Mob: +44 7980 541 893
Sam Allen Mob: +44 7884 664 686
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEADAKESKXFAF
(END) Dow Jones Newswires
December 07, 2017 02:00 ET (07:00 GMT)
Asimilar (LSE:ASLR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Asimilar (LSE:ASLR)
Historical Stock Chart
From Apr 2023 to Apr 2024