23 Sep 2022 07:00
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 £500,000 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 £500,000.
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 £50,000 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/.