Jaywing Regulatory News (JWNG)

26 Apr 2007 07:01

Digital Marketing Group PLC26 April 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND ORJAPAN 26 April 2007 Digital Marketing Group plc Placing of 14,285,715 ordinary shares at 70p per ordinary share withinstitutional investors to raise approximately £10.0 million. Digital Marketing Group plc ("DMG" or the "Company") announces the placing (the"Placing") by Cenkos Securities plc of 14,285,715 new ordinary shares of 50peach ("Ordinary Shares") at a price of 70 pence per share to raise £10.0 millionbefore expenses. Funds raised from the Placing will allow DMG to repay existing debt assumed fromits acquisitions of Cheeze Limited and Alphanumeric Group (trading as "Jaywing"), as well as creating financial flexibility to complete the acquisitions of further fast growing digital businesses with complementary specialist skills. Cenkos Securities plc acted for the Company in the Placing of the new OrdinaryShares with institutional investors, which is conditional upon, inter alia,admission of the new Ordinary Shares to trading on AIM. Application has beenmade for the admission of the new Ordinary Shares to trading and it is expectedthat admission will occur and dealings will commence on AIM on 2 May 2007. Thenew Ordinary Shares will rank pari passu in all respects with the existingOrdinary Shares currently traded on AIM. Following admission there will be64,412,152 Ordinary Shares in issue. Ben Langdon, Chief Executive of DMG, commented: "We are very encouraged by thesignificant interest shown in the Company and welcome our new investors. ThePlacing will significantly strengthen the Company's balance sheet and createadditional headroom to continue to pursue our strategy. This is an excitingperiod for DMG as it seeks to enhance its product platform to enable the Companyto provide a fully comprehensive digital direct marketing service to its clientsas marketers continue to follow consumers online." For further information contact: Digital Marketing Group Tel: 01491 615 306 Ben Langdon, Chief Executive Smithfield Consultants Tel: 020 7360 4900 Libby Young Further information: Digital Marketing Group plc Digital Marketing Group (DIGI.L) is a recently formed group of companies focusedon the provision of digital direct marketing services. DMG floated on AIM on 26October 2006 and simultaneously completed the acquisitions of two agenciesspecializing in online and offline direct marketing; HSM Limited (including"Inbox Digital" and "HSM Telemarketing") and Scope Creative Marketing Limited(trading as "Dig For Fire"). The Company then acquired Cheeze Limited andAlphanumeric Group (trading as "Jaywing") on 26 January 2007. The Companyintends to continue to grow organically and by acquiring businesses withcomplementary skills in digital direct marketing. DMG provides its clients with a range of digital direct marketing services,coupled with database marketing skills. By doing this, DMG is able to offerclients the ability to coordinate both their "online" and "offline" directmarketing strategies and concurrently offer the skills necessary to utilisecustomer data in order to generate more effective marketing campaigns, higherbrand loyalty and improved client profitability. For more information please visit: www.digitalmarketinggroup.co.uk Online Advertising in the UK* • £2.016 billion was spent online by advertisers in 2006, a rise of 41.2% year-on-year. • The internet now accounts for 11.4% of all advertising revenues, up from 7.8% in 2005. • Online advertising's share of the UK advertising market (11%) still lags significantly behind its share of UK internet users' media time (25%) and represents the growth opportunity still inherent in the channel. • 65% of the UK population is online, 89% of at-home users are on broadband and a third of them use wireless. • The internet is now the second largest advertising market in the UK, after TV, (£3.9 billion spend in 2006), and ahead of national newspapers, (£1.9 billion spend in 2006). * Source: Internet Advertising Bureau / PricewaterhouseCoopers UK online adspend figures for 2006 Cenkos Securities plc ("Cenkos"), which is authorised and regulated in theUnited Kingdom by The Financial Services Authority, is acting exclusively forthe Company as nominated adviser, broker and placing agent in connection withthe Placing. Cenkos is not acting for any other person and will not beresponsible to anyone other than the Company for providing the protectionsafforded to clients of Cenkos or for advising any other person in relation tothe Placing. The new Ordinary Shares have not been, nor will be, registered under the UnitedStates Securities Act of 1933 (as amended) or under the securities legislationof any state of the United States of America or of any province or territory ofCanada, Australia, Japan, the Republic of Ireland or the Republic of SouthAfrica. There will be no public offering of the new Ordinary Shares in theUnited States. Subject to certain exceptions, the new Ordinary Shares may not bedirectly or indirectly offered, sold, transferred, taken up or delivered in,into or from the United States, Canada, Australia, Japan, the Republic ofIreland or the Republic of South Africa or their respective territories orpossessions. This announcement does not constitute an offer to sell or issue orthe solicitation of an offer to buy new Ordinary Shares in any jurisdiction inwhich such offer or solicitation is unlawful. Accordingly, copies of thisannouncement are not being and must not be mailed or otherwise distributed orsent in or into or from the United States, Canada, Australia, Japan, theRepublic of Ireland or the Republic of South Africa and any person receivingthis announcement (including custodians, nominees and trustees) must notdistribute or send it in or into or from the United States, Canada, Australia,Japan, the Republic of Ireland or the Republic of South Africa. Thisannouncement has not been approved by Cenkos for the purposes of section 21 ofthe Financial Services and Markets Act 2000. This announcement has not beenexamined or approved by The Financial Services Authority or the London StockExchange or any other regulatory authority. This information is provided by RNS The company news service from the London Stock Exchange