Picture of 7Digital logo

7DIG 7Digital News Story

0.000.00%
gb flag iconLast trade - 00:00
Consumer CyclicalsHighly SpeculativeMicro CapMomentum Trap

REG - 7digital Group PLC - Fundraising and Directorate Change

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220923:nRSW3778Aa&default-theme=true

RNS Number : 3778A  7digital Group PLC  23 September 2022

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

23 September 2022

 

7digital Group plc

("7digital" or "the Company")

 

Fundraising and Directorate Change

 

7digital (AIM: 7DIG), the global leader in B2B end-to-end digital music
solutions, announces that it has raised £500,000 in the form of a loan from a
significant shareholder (the "Shareholder Loan").

 

The Company also announces the appointment of Mark Foster, who has been a
Non-executive director of the Company since April 2015, as Interim Chairman
following the resignation of Tamir Koch, with immediate effect, who is
stepping down from his role as Chairman to focus more time on the development
of eMusic Blockchain. Tamir Koch will remain on the Board as a Non-executive
director.

 

Fundraising

 

The Company has entered into an agreement with Magic Investments S.A.
("Magic"), a significant shareholder represented by David Lazarus who is a
director of the Company, for a loan of £500,000.

 

The key terms of the Shareholder Loan are:

·    Repayable on or before 1 October 2023

·    Interest at 5% (five percent) per annum, payable on a quarterly basis

·    The Principal Amount will be repayable in one lump sum on the
Repayment Date

·    The loan is unsecured

 

The funds will be used by the Company for working capital purposes and to
fully repay the £50,000 previously drawn on the loan from Tamir Koch,
announced on 30 June 2022.

 

Paul Langworthy, CEO of 7digital, said: "We are pleased to have secured this
financing, which will primarily be used for working capital purposes. I'd like
to extend my thanks to David on behalf of myself and the executive team for
his trust and support.

 

"I'd also like to thank Tamir for his advice and support throughout his tenure
as Chairman. He has made a tremendous contribution to the development of the
business, and I am pleased that he remains on the Board and we retain access
to his experience and expertise. We are delighted that Mark has agreed to take
on the role of Interim Chairman, while we conduct the process to appoint a
permanent chairperson. He has been working with 7digital for over seven years
and, combined with his significant industry experience, I am confident he will
bring a lot of value in his role as Chairman."

 

Mark Foster, Interim Chairman of 7digital, added: "7digital has done some
exceptional work in seizing the growth opportunities in music licensing in
fitness & wellness and social media, and establishing itself as a leading
music platform for brands. Yet I am sure it is only a small fraction of what
the Company will achieve in the future. I look forward to continuing to work
with the 7digital team to deliver further growth and drive shareholder value."

 

Background on Mark Foster

 

Mark has been a Non-executive director of the Company since April 2015. He has
spent much of his career in the music industry, in a succession of marketing
and international roles for all three major labels, including time in Paris as
Marketing Director for Warner Music France. Returning to London as Vice
President of European Marketing, Mark oversaw pan-regional marketing strategy
before founding Warner Music International's New Media Division. After leaving
Warner, he launched and ran Deezer in the UK and Ireland, then was appointed
CEO for Arts Alliance, a leading global player in Event Cinema. Since 2015, he
has developed a portfolio of Non-executive director and chair roles for a
range of businesses, including highly respected entertainment analysts MIDiA
Research, and has led the digital transformation strategy for Moat Homes, a
major Housing Association. In addition, he acts as advisor and brand
ambassador for a number of start-ups and scale-ups in the digital
entertainment and creative industries.

 

Related Party Transaction

 

David Lazarus is a Non-executive director of the Company and, via Magic, is
interested in 742,436,219 ordinary shares representing 27.3% of the Company's
issued share capital. Accordingly, the Shareholder Loan is a related party
transaction pursuant to Rule 13 of the AIM Rules for Companies.

 

The independent directors (being the 7digital directors excluding David
Lazarus), having consulted with Strand Hanson as the Company's nominated
adviser, consider the terms of the Shareholder Loan to be fair and reasonable
insofar as the shareholders are concerned.

 

 

For further information please contact:

 

 7digital Group plc
 Paul Langworthy                                          c/o +44 (0)20 4582 3500

 Strand Hanson Limited (Nominated and Financial Adviser)
 Richard Johnson, James Harris, James Bellman             +44 (0)20 7409 3494

 Arden Partners plc (Broker)
 Ruari McGirr                                                                  +44 (0)20 7614 5900

 Gracechurch Group (Financial PR)
 Harry Chathli, Claire Norbury                            +44 (0)20 4582 3500
                                                          7digitalIR@gracechurchpr.com

 

 

About 7digital

7digital (http://www.7digital.com/) is the global leader in B2B end-to-end
digital music solutions, providing a scalable cloud-based platform that
enables companies and brands to connect to its global music catalogue and
rights management system to launch and manage unique and engaging music
experiences. Operating worldwide in over 80 markets and integrated with more
than 300,000 labels and publishers, 7digital's platform automates the complex
and time-consuming processes of music management, making it easier to access
and use music in streaming services, social media, home fitness, gaming,
retail and more. With best-in-class infrastructure, deep industry expertise
and intelligence tools, 7digital empowers their clients to innovate, grow and
serve tomorrow's music consumer. For more information, visit
http://www.7digital.com/ (http://www.7digital.com/) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  BOABKBBPFBKDOCB

Recent news on 7Digital

See all news