18 Dec 2017 07:00
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.
For immediate release
18 December 2017
7digital Group plc("7digital" or the "Company")
Result of Oversubscribed Open Offer
On 1 December 2017, the Company published its shareholder circular (the "Circular") in connection with the Capital Raising.
The Open Offer closed for acceptances at 11.00 a.m. on 15 December 2017.
The Company is pleased to announce that the Open Offer was significantly oversubscribed. Valid acceptances have been received from Qualifying Shareholders in respect of 45,414,533 Open Offer Shares, including applications for 39,639,569 Open Offer Shares under the Excess Application Facility. This represents approximately 363.3 per cent. of the maximum number of Open Offer Shares available under the Open Offer.
Qualifying Shareholders who have validly applied for Open Offer Shares will receive their full Open Offer Entitlement. Applications for New Ordinary Shares under the Excess Application Facility will be scaled back pro rata to the number of Excess Shares applied for by Qualifying Shareholders under the Excess Application Facility.
The Company has therefore raised gross proceeds of £0.5 million through the Open Offer. This is in addition to the approximately £8.0 million (before expenses) to be raised pursuant to the Placing and the Subscription. It is expected that the Admission of the 12,500,000 Open Offer Shares will become effective at 8.00 a.m. on 19 December 2017.
Open Offer Shares (held in uncertificated form) are expected to be credited to CREST accounts on 19 December 2017 and definitive share certificates for the Open Offer Shares (held in certificated form) are expected to be despatched to shareholders who hold their Ordinary Shares in certificated form by 29 December 2017.
The Capital Raising remains conditional upon, amongst other things, Shareholder approval of the Resolutions at the General Meeting to be held later today and Admission.
Capitalised terms used in this announcement shall have the same meanings given to them in the Circular.
Simon Cole, Chief Executive of 7digital, said:
"We received very strong demand from high quality institutional investors after our fundraising Roadshow and our original Placing was over-subscribed. Now we can also see that private retail investors have shown strong belief in the company with a significantly over-subscribed Open Offer.
It is heartening to see such a level of interest in our Company as the streaming music market which we supply becomes a mass market proposition. Clearly investors believe that we are a way to invest in that growth. I believe that 7digital has turned an important page: we now have a strong balance sheet, a great sales pipeline and have everything we need to take us to profitability in 2018."
For further information please contact:
7digital | 020 7099 7777 |
Simon Cole, Chief Executive | |
Matt Honey, Chief Financial Officer Holly Ashmore, PR Manager | |
Arden Partners (nominated adviser, broker and bookrunner) |
020 7614 5900 |
Chris Hardie/Ruari McGirr/Benjamin Cryer - Corporate Finance | |
Fraser Marshall - Corporate Broking | |
About 7digital
7digital is the global leader in B2B end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.
7digital fosters industry growth and innovation by simplifying access to music for clients such as Onkyo, Global Radio and musical.ly. From years of being the largest independent producer of programming for the BBC, launching Radioplayer in multiple territories, and powering services for partners like Panasonic, TDC and Electric Jukebox, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.