REG - YOLO Leisure & Tech - Update re Investment <Origin Href="QuoteRef">YOLO.L</Origin>

AsimilarAnnouncement

07/12/2017 07:06

RNS Number : 6323Y
YOLO Leisure & Technology PLC
07 December 2017
YOLO Leisure and Technology plc
("YOLO" or the "Company")
Update re Magic Media Works
YOLO is pleased to announce that its investee company, Magic Media Works Ltd ('Magic'), has received commitments of 1.46 millionfrom existing and new investors towards an intended 2 million new round of financing.
In addition, Henrik Holmark, previously the CFO of Pandora Jewellery, has invested 650,000 in this fund raise and will join the Magic board as a non-executive director. 
The fund raise follows the launch of ROXI, the new 5-in-1 music entertainment device, which brings Unlimited Music, Karaoke, Music Games and other family friendly features to consumers in the UK and USA. Funds will be used to continue the development and rollout of ROXI and related products and services in 2018.
YOLO has taken the strategic decision not to invest additional capital into Magic at this time. Further, as the largest shareholder in Magic, YOLO has agreed to release some of its shares in Magic and its anti-dilution rights to acquire additional shares in Magic to new investors for nominal consideration in order to assist Magic in completing the fund raise and so help it to achieve its goals and potential. The board of Magic has confirmed to YOLO that the provision of this support by the Company has been instrumental in allowing Magic to move forward to the successful completion of this funding round.
The 2 million fund raise (assuming subscription in full) will comprise the issue of up to 2,822,646 new ordinary shares in Magic and the transfer of 1,026,979 ordinary shares in Magic currently held by YOLO to the company and investors. The Magic ordinary shares are being acquired by the investors at a price of 50.8p per ordinary share. On completion of the 2 million fund raise, there will be up to 8,831,975 Magic ordinary shares in issue. 
Following completion of this round of funding YOLO will remain a significant shareholder in Magic with a shareholding equal to 1,646,682 ordinary shares in Magic (representing 18.6 percent of the issued share capital of Magic, subject to the 2.0 million fundraise completing) and options over a further 95,000 ordinary shares. YOLO will retain representation on the Magic board. Henrik Holmark will own 13.4% and Rob Lewis, the company founder, will own 26.8%.The terms of YOLO's outstanding convertible loan note of 500,000 as announced on 5 June 2017 remain unchanged.
Completion of the fund raise will enable Magic to start the New Year with a strengthened Board, new product initiatives to roll out in both the US and UK territories and, crucially, new funding to help it to execute its development plans.
Magic has recently launched its new ROXI home entertainment system and invested into a new marketing campaign in the UK and USA. The original product has been significantly upgraded, with initial sales in the US and UK generating positive feedback from retailers. A pipeline of new product additions is also in place.
YOLO now plans to further build out its strategy as an investment business, and continue to seek new investments in accordance with its investing policy and explore possible reverse takeover opportunities if certain criteria are met.
Simon Robinson, Chief Executive Officer of Yolo, said:
"YOLO is delighted that Magic Media Works has secured new funding and that Henrik Holmark, previously CFO of Pandora, one of the world's best known global jewellery brands, has joined the board and taken a material shareholding. Magic is now well positioned to execute its plans and new product initiatives in 2018. 
"We will now focus on further growth opportunities for YOLO as an investment company, with both the existing portfolio and also continue to consider new investments, including those that may constitute reverse takeovers under the AIM Rules."
YOLO Leisure and Technology plc
Simon Robinson
simon.robinson@yoloplc.com
Cairn Financial Advisers LLP
Sandy Jamieson, Emma Earl
Tel: +44 20 7213 0880
Peterhouse Corporate Finance Limited(Sole broker)
Duncan Vasey / Lucy Williams
Tel: + 44 20 7220 9797
Walbrook PR Ltd
Tel: +44 20 7933 8787 oryolo@walbrookpr.com
Paul McManus
Mob: +44 7980 541 893
Sam Allen
Mob: +44 7884 664 686

This information is provided by RNS
The company news service from the London Stock Exchange
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