Last checked at 12 Nov 2015 07:00
12 November 2015
PARALLEL MEDIA GROUP PLC
("PMG" OR THE "GROUP")
Heads of Agreement
Parallel Media Group Plc (AIM:PAA), a leading event marketing and media agency, is pleased to announce that its music division, through Parallel Contemporary Music International Limited, ("PCMI"), has entered into a legally binding heads of agreement with Klab Entertainment Inc. ("Klab Entertainment") and Team Rock Limited ("TeamRock") securing the underwriting for the 2016 Classic Rock Roll of Honour music event in Tokyo.
The agreement will result in PCMI receiving certain licence fees, commissions and a share of the net profit of the event, if any. The agreement can be terminated in certain agreed circumstances.
As set out in the Group's final results for the year ended 31 December 2014, pursuant to the PCMI Agreement, PMG will receive all the revenue which PCMI receives after the deduction of certain approved operating costs and any VAT. The effect of this arrangement with PCMI is that the Group receives the economic benefit of the music division, while the costs associated with the joint venture arrangement are met by PCMI rather than PMG.
The revenue generated in accordance with the underwriting arrangement in relation to the 2016 Classic Rock Roll of Honour in Tokyo is expected to exceed the approved operating costs and VAT as referred to above. Accordingly, this arrangement will result in revenue being received by the Group.
TeamRock is majority owned by funds managed by Harwood Capital LLP, which also own 28.23 per cent. of the ordinary shares in Parallel Media Group plc, and Tim Sturm, non-executive director of PMG, is a partner of Harwood Capital LLP and a non-executive director of TeamRock.
Classic Rock Roll of Honour
Held annually since 2005, the Classic Rock Roll of Honour is one of the most highly regarded music award ceremonies of the year, attracting the biggest names in the world of rock. Previous recipients of the awards have included Jimmy Page, The Rolling Stones, Eric Clapton, ZZ Top, Gene Simmons, Alice Cooper and Lemmy.
The definitions used in this announcement are as set out in the Group's final results for the year ended 31 December 2014.
Contact Details
For more information please contact:
Parallel Media Group Plc David Ciclitira www.parallelmediagroup.com
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+44 (0) 20 7225 2000 |
Sanlam Securities UK Limited Virginia Bull - Corporate Finance www.sanlamsecuritiesuk.com
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+44 (0) 20 7628 2200 |