13 May 2019 14:09
13 May 2019
7digital Group plc("7digital" or the "Company")
Transfer of Loan Notes and Standstill Agreement
Further to its notification of 7 May 2019, 7digital Group plc (AIM: 7DIG) is pleased to announce that a third party investor (the "Investor") has agreed to purchase both outstanding loan notes and entered into a standstill agreement with 7digital pursuant to which the Investor has agreed not to seek early redemption or conversion of the notes before 30 June 2019 except in certain limited circumstances (including a major equity issuance or the insolvency of the Company).
As part of this arrangement, the redemption notice served by one of the loan noteholders has been revoked. Notwithstanding this revocation, this transaction does not provide the Company with new financing. Accordingly the Board remains of the view that the Company will require material further equity and/or debt funding. It is likely that such funding will be required by the end of June 2019. Without such funding, the Company is unlikely to be able to continue as a going concern.
The Company is in discussions with regard to a significant injection of equity financing which is likely to be at a discount to the prevailing share price. However, there can be no guarantee that an equity financing or any other refinancing transaction will be completed, nor as to the terms on which an equity financing or any other potential refinancing transaction may be completed.
This announcement contains information which, prior to its disclosure, was deemed inside information for the purpose of the Market Abuse Regulation.
For further information please contact:
7digital | 020 7099 7777 |
John Aalbers, CEO |
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Julia Hubbard, CFO Holly Ashmore, PR Manager |
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Arden Partners (nominated adviser and broker) |
020 7614 5900 |
Ruari McGirr/ Tom Price/ Benjamin Cryer - Corporate Finance |
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About 7digital (http://about.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 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 and TikTok (formerly musical.ly). From years of being the largest independent producer of programming for the BBC and powering services for partners like Panasonic and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.