LONDON (Alliance News) - YOLO Leisure and Technology PLC said Monday it has raised GBP2.5 million in a share placing and that it intends to invest in music streaming technology company Magic Media Works Ltd.
YOLO said it successfully placed 250.0 million new shares at a price of 1.00 pence each, with subscribers to the placing also receiving one warrant for every five shares subscribed for, exercisable at a price of 1.30p per share.
YOLO also said it will invest approximately GBP1.4 million in Magic Media Works, which has developed a premium ad-free music streaming service, Electric Jukebox.
The investment will be made by secured convertible loan notes which are convertible into approximately 41% of the share capital of the company. YOLO said the remainder of the placing funds will be used for working capital and investments.
"The oversubscribed fundraise of GBP2.5 million demonstrates the support and confidence of existing shareholders in this transaction, including Nigel Wray, and new institutional investors. The capital raised will enable Magic Works to launch Electric Jukebox in the UK and accelerate their strategic expansion into new territories and markets. The fundraise also significantly strengthens YOLO's balance sheet," said Simon Robinson, chief executive of YOLO.
Shares in YOLO Leisure and Technology were down 0.7% at 1.19p Monday.
By Adam Clark; adamclark@alliancenews.com
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