10 Nov 2015 08:40
10 November 2015
reach4entertainment enterprises plc
("r4e" or the "Company")
SpotCo repayment agreement
The Company is pleased to announce the conclusion of its deferred payment arrangements in respect of its acquisition of Spot and Company of Manhattan Inc. ("SpotCo"). The Company acquired SpotCo in 2008 and, as announced on 15 November 2012, a debt repayment agreement was entered into, which restructured outstanding debt owed to the vendor, Drew Hodges. Pursuant to that agreement, regular payments have been made to the vendor up to a total of $3.2 million, following which the Company had the option to pay the remaining balance of $1 million by the issue of new ordinary shares in the Company. It has now been agreed to waive this final payment of $1 million in full. Drew Hodges continues in his current role at SpotCo.
This agreement with Drew Hodges represents a related party transaction pursuant to the AIM Rules for Companies. Accordingly, the Directors of r4e consider, having consulted with r4e's nominated adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
reach4entertainment enterprises plc David Stoller, Executive Chairman
| +44 (0) 20 7968 1655 |
Allenby Capital (Nominated Adviser and Broker) Jeremy Porter/James Reeve
| +44 (0) 20 3328 5656 |
Novella Communications (Financial PR) Tim Robertson / Ben Heath | +44 (0) 20 3151 7008 +44 (0) 7900 927650
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