29 Sep 2020 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
29 September 2020
7digital Group plc
("7digital" or the "Company")
7digital adds £1m revolving credit facility with Investec Bank for strategic growth
7digital (AIM: 7DIG), the global leader in B2B end-to-end digital music solutions, is pleased to announce that on 28 September 2020 it entered into a £1 million secured revolving credit facility ("RCF") with Investec Bank plc ("Investec").
The RCF will allow 7digital additional capability, alongside the £6 million gross funds raised recently, to progress the commercial opportunities it is pursuing as well as expand into strategic market verticals such as home fitness, artist monetisation, and social media. Capitalising on more than a decade of innovation and in-house expertise, 7digital has developed the technologies, scale and capabilities that uniquely position the company to be the go-to-platform to power music streaming services and support new models and formats for music consumption that are driving the industry forward.
The RCF is for a period of 36 months to provide access to £1 million in additional capital. The funds drawn attract interest, payable quarterly, at 6% above the Bank Base Rate. The Company will issue to Investec 1,382,488 warrants with an exercise price of 2.17 pence in part satisfaction of an arrangement fee. The RCF is secured by way of a debenture from the Company together with guarantees provided by certain shareholders, including Tamir Koch and David Lazarus (through Magic Investments S.A.), each a Board Director.
Tamir Koch, Chairman of 7digital, said: "We are delighted to complete this non-dilutive financing which, together with our recent oversubscribed equity raise, provides 7digital with a total of £7 million in capital to progress our growth strategy. We thank Investec for forming this partnership which further demonstrates the potential of the business."
Paul Langworthy, CEO of 7digital, said: "We are pleased to have secured this loan facility which will bolster our balance sheet further and facilitate our strategy to expand in rapid-growth industries of home fitness, artist monetisation and social media that consider music a core component to their loyalty and growth strategies. Having access to low-cost capital provides the financial strength and flexibility for 7digital to progress our articulated strategy, win new business and deliver shareholder returns."
Enquiries
7digital | 020 7099 7777 |
Paul Langworthy, CEO |
|
|
|
Arden Partners (Nominated Adviser and Broker) | 020 7614 5900 |
Richard Johnson, Benjamin Cryer |
|
|
|
Luther Pendragon (Financial PR) | 020 7618 9100 |
Harry Chathli, Joe Quinlan, Elliot Fradd |
|
|
|
About 7digital (www.7digital.com/)
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, licensing expertise and extensive global music rights used to create music and music video streaming and radio services for a diverse range of customers. These include consumer and social media brands, online fitness technologies, 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. From years of being the largest independent producer of programming for the BBC and powering services for partners like Triller, Soundtrack Your Brand, Global Eagle, GrandPad and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.