Last checked at 17 Dec 2015 07:00
ZOO DIGITAL GROUP PLC
("ZOO", the "Company" or the "Group")
Convertible Loan Note
ZOO Digital Group plc, the provider of cloud-based media production services and software to the creative media industries, is pleased to announce that it has raised £500,000 by way of the issue of a new convertible loan note (the "New Loan Notes"), the key terms of which are identical to the Company's existing Unsecured Convertible Loan Notes of £2,570,500 (the "Existing Loan Notes").
Subsequent to this issue of New Loan Notes, the combined amount of the New Loan Notes and the Existing Loan Notes will have a principal value of £3,070,500. The key terms of the New Loan Notes are identical to those of the Existing Loan Notes, being primarily that the New Loan Notes accrue a fixed rate of interest at 7.5 per cent. per annum (payable half-yearly) and that the conversion price of the New Loan Notes remains as 48 pence per ordinary share of 15 pence each in the capital of the Company ("Ordinary Shares") converted, subject to notice of conversion being given by 31 October 2017, at which point the New Loan Notes and the Existing Loan Notes shall be redeemed (together with any accrued but unpaid interest).
The New Loan Notes have been issued to Herald Investment Trust plc ("Herald") which, as a substantial shareholder of the Company, constitutes a related party transaction under the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, finnCap Limited, consider that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned. In addition to the New Loan Notes, Herald holds £1,364,500 of the Existing Loan Notes.
Stuart Green, Chief Executive Officer of the Company, said: "The New Loan Notes will provide additional working capital to the Group. As the Company noted at the time of its interim results for the six months ended 30 September 2015, the Company is actively engaged in commercial discussions with a growing number of significant prospects and the Board remains confident of being able to scale its operations efficiently over time."
Ends
For further enquiries please contact:
ZOO Digital Group plc | 0114 241 3700 |
Stuart Green - Chief Executive Officer | |
Helen Gilder - Group Finance Director | |
finnCap Ltd |
020 7220 0500 |
Ed Frisby / Emily Watts (corporate finance) Joanna Scott (corporate broking) |
About ZOO Digital Group plc:
ZOO Digital is a provider of cloud-based media production services and software to the creative media industries, predominantly in entertainment. ZOO's full service proposition includes localisation of audio-visual content (embracing subtitling, captioning and dubbing), creative workflow systems and digital distribution solutions.
ZOO's services enable clients to capitalise on new routes to market and deliver localised content to their customers across multiple platforms.
ZOO's clients enjoy reduced time to market, higher quality and lower costs. This is achieved by delivering differentiated production services through the application of innovative cloud software. In this way ZOO provides flexible solutions that combine services with software licensing to meet the diverse needs of clients of all sizes across the creative media industries. ZOO's software is used to create localised entertainment products, digital packaging and marketing campaigns for some of the best known brands in the world.