18 Oct 2021 07:00
18 October 2021
7digital Group plc
("7digital" or "the Company")
7digital secures £1m expansion to revolving credit facility with Investec Bank
7digital (AIM: 7DIG), the global leader in B2B end-to-end digital music solutions, is pleased to announce a £1 million increase to its revolving credit facility ("RCF") with Investec Bank plc ("Investec"), bringing the total facility to £2 million ("Enlarged RCF").
The Enlarged RCF will mature in September 2023, in line with the original terms of the RCF entered into in September 2020 ("Existing RCF"). The funds drawn continue to attract interest, payable quarterly, at 6% above the Bank Base Rate.
The Company will issue to Investec 5,437,883 warrants, with an exercise price of 0.55 pence and a life of 36 months, in satisfaction of an arrangement fee. The Enlarged RCF is secured by way of guarantees provided by certain shareholders, including Tamir Koch and David Lazarus (through Magic Investments S.A.), each a Board Director, as well as the security in place for the Existing RCF.
Paul Langworthy, CEO of 7digital, said: "This enlarged credit facility provides low-cost capital that will satisfy our cash requirements as we transition to becoming EBITDA positive. As we stated in our interim results, we have new contracts representing significant revenue that are just awaiting signature. While this is taking longer than originally anticipated, we expect they will be finalised in the near-term and enable us to generate positive EBITDA for the full year of 2022. I would like to thank Investec as well as our significant shareholders for their continued support as we look to build a sustainable platform for growth."
Tamir Koch, Chairman of 7digital, added: "As a major shareholder and as Chairman, I'm proud to be able to assist in supporting 7digital and I continue to back the Company whole-heartedly. We have a significant pipeline of new contracts that we expect to soon be signed and we are also seeing some exciting prospects increasingly materialise. Importantly, this capital has been secured at a standard rate of interest and is non-dilutive barring a small number of warrants as part of the arrangement fee. All of this reinforces my confidence in 7digital and in our ability to deliver a bright future."
Enquiries
7digital Paul Langworthy | c/o +44 20 7618 9100 |
Arden Partners (Nominated Adviser and Broker) Richard Johnson | +44 20 7614 5900 |
Luther Pendragon (Financial PR) Harry Chathli, Claire Norbury | +44 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/.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014, as implemented into English law ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain.