15 Jul 2021 07:00
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
15 July 2021
For immediate release
Immedia Group Plc
("Immedia" or "the Company" or "the Group")
Termination of talks with Sprift Technologies Ltd and lifting of suspension of trading on AIM
Update on the Proposed Disposal of Immedia Broadcast Limited
Immedia (AIM: IME), a supplier of multi-media content and digital solutions for leading brands and global businesses announces that, following the Company's announcement on 26 March 2021, the Company has terminated talks with Sprift Technologies Ltd ("Sprift") with immediate effect.
As this proposed acquisition, on the terms envisaged, would have been classified as a reverse takeover ("RTO") in accordance with the AIM Rules for Companies, the Company's shares were suspended from trading on AIM with effect from 7.30 a.m. on 26 March 2021. As a result of due diligence and subsequent valuation discussions the negotiations have now been terminated and the Company has requested the suspension of trading in its shares to be lifted with effect from 7.30 a.m. on 15 July 2021.
Secured Loan
As previously announced, Immedia agreed to provide Sprift with a secured loan facility of up to £900,000 ("Loan") for working capital purposes in three tranches, which has now been drawn in full. As Immedia has withdrawn from negotiations in relation to the proposed RTO, the Loan has become repayable, in full, in 12 months from the withdrawal from negotiations and will attract interest at a rate of 15 per cent. per annum, which is payable monthly. The Company is negotiating with Sprift for the recovery of costs of up to £150,000, which would be added to the amount owed to Immedia in respect of the Loan, on the same terms. The Directors currently believe that Sprift will be able to repay the Loan in accordance with its terms, but this may be dependent on its future trading performance and its ability to secure additional working capital funding as and when required. The Loan is secured by a debenture containing fixed and floating charges over Sprift's business and assets, granted by Sprift in favour of Immedia.
Following drawdown of the Loan, the Company has net cash available, at 30 June 2021, of approximately £2.09 million.
Immedia Broadcast Limited
In light of the above developments and improved trading conditions the Board continues to consider divestment options for its main trading subsidiary, Immedia Broadcast Limited. Any proposed disposal would require shareholders' approval under AIM Rule 15.
A detailed trading update will be provided as part of the Interim Results and further announcements will be made as appropriate.
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For further information please contact: | |
Immedia Group Plc Tim Hipperson, Non-executive Chairman Ross Penney, Chief Executive | Tel: +44 (0) 1635 556200 |
SPARK Advisory Partners Limited (Nomad) Mark Brady Neil Baldwin | Tel: +44 (0) 203 368 3550 |
SP Angel Corporate Finance LLP (Broker) Abigail Wayne | Tel: +44 (0) 207 470 0470 |
Tooley Street Communications (IR & media relations) Fiona Tooley | Tel: +44 (0) 7785 703523 |
About Immedia Group Plc
Immedia Group Plc is a multi-media content and digital solutions provider to global businesses delivering audio visual communication services for brands.
The business provides 'live' branded channels to retail locations across the UK and Europe. Immedia's interactive audio channels deliver targeted original content via its own DreamStream-X platform with encrypted Dreamstream technology deployed in each location. Each channel is supported with powerful data analytics tools that monitor audience activity and provide data to enable Immedia to further enhance audience engagement.
In addition, Immedia creates original audio production and video content as well as 3D animation and the supply, installation and maintenance of audio visual equipment.
Immedia clients include Shell, Subway, BP, Nationwide Building Society, JD Sports, Weir, BMW, IKEA, and FIFA.
To read more about the business, visit www.immediaplc.com or email us on enquiries@immediaplc.com