Trading Update, Warrant Extension, Sprift Loan
21/12/2021 06:59
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RNS Number : 2706W Immedia Group PLC 21 December 2021
The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014 (as in force in the United Kingdom pursuant to the European
Union (Withdrawal) Act 2018). Upon the publication of this announcement via
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21 December 2021
For immediate release
Immedia Group Plc
("Immedia" or "the Company" or "the Group")
Trading Update, Contract Renewal, Warrant Extension, Sprift Loan
Immedia (AIM: IME), a supplier of multi-media content and digital solutions
for leading brands and global businesses announces the updates below.
Trading Update and Contract Extension
Immedia Group plc CEO Ross Penney comments as follows:
"In the statement accompanying the unaudited Half Year results released on 31
August 2021 I alluded to a significantly improved outlook for H2 2021. I am
pleased to confirm that this has proved to be the case.
September and October 2021 have been two of the best trading months in the
Company's history, helped hugely by the creative content and AV installation
work done for participants at COP26 in Glasgow. Whilst much of this is
one-off project work, we have seen a renewal in demand across all sectors -
audio, creative, video production and installation.
Business and market confidence has improved, however it is gratifying that the
improved performance of the business has been facilitated by the numerous
improvements in culture, structure and processes implemented over the last 18
months.
Lastly, I am delighted that the Company has renewed its contract with IKEA
Limited for a further three years. I am very proud that by the end of the
contract term we will have served IKEA for 20 years. The Company provides
music and audio production and distribution services to IKEA stores in the
United Kingdom and Republic of Ireland. We look forward to further
developing our excellent relationship with IKEA in the years to come.
The Board remains of the view that the Group's main trading subsidiary,
Immedia Broadcast Limited, would trade more efficiently as a private company
and therefore continues to explore divestment options. Any proposed disposal
would require shareholders' approval under AIM Rule 15."
Warrant Extension
On 8 January 2021, pursuant to a placing and subscription to raise £3
million, the Company announced the issue of 12,000,000 new warrants,
exercisable at a price of 35 pence for a period of 12 months from admission,
subsequently announced as 8 February 2021. In order to maintain the
Company's access to capital and enable the Company to assess and complete
potential corporate actions in a timely manner the Board has agreed to extend
the final exercise date of the warrants to 30 June 2022 or, if the Company
publishes an Admission Document prior to 30 June 2022 relating to a reverse
takeover, the Business Day falling two Business Days prior to the date of the
General Meeting relating to the reverse takeover. As part of the fundraising,
Mark Horrocks subscribed for 1,600,000 subscription shares (and so received
1,600,000 new warrants). As Mark Horrocks is a Director and substantial
shareholder, any extension of the new warrants would be a related party
transaction pursuant to AIM Rule 13. The directors, other than Mark
Horrocks, having consulted with the Company's nominated adviser believe that
the terms of the new warrant extension are fair and reasonable insofar as
shareholders are concerned.
Sprift Loan
On 15 July 2021 the Company entered into a cost recovery agreement with Sprift
Technologies Limited ("Sprift"). Driven largely by consecutive monthly
growth in Estate Agent subscriptions and the provision of property data APIs,
Sprift Technologies generated revenue growth of circa 100% in the eight months
ended 30 September 2021 compared to the equivalent period last year. In the
interest of facilitating further growth of the Borrower, the Company has
entered a revised facility agreement ("Facility Agreement") with Sprift and
Mark Horrocks that increases the facility size from £1.05m to £2.55m,
defines equity conversion terms in the event of defined liquidity events and
sets out board participation rights. No further funding will be provided by
the Company under this agreement. Mark Horrocks is a party to the Facility
Agreement and as such this is a related party transaction pursuant to AIM Rule
13. The directors independent of the Facility Agreement, having consulted
with the Company's nominated adviser, believe that the terms of the Facility
Agreement are fair and reasonable insofar as shareholders are concerned.
~ Ends ~
For further information please contact:
Immedia Group Plc Tel: +44 (0) 1635 556200
Tim Hipperson, Non-executive Chairman
Ross Penney, Chief Executive
SPARK Advisory Partners Limited (Nomad) Tel: +44 (0) 203 368 3550
Mark Brady
Neil Baldwin
SP Angel Corporate Finance LLP (Broker) Tel: +44 (0) 207 470 0470
Abigail Wayne
Tooley Street Communications (IR & media relations) Tel: +44 (0) 7785 703523
Fiona Tooley
About Immedia Group Plc
Immedia Group Plc is a multi-media content and digital solutions provider to
global businesses delivering audio visual communication services for brands.
The business provides 'live' branded channels to retail locations across the
UK and Europe. Immedia's interactive audio channels deliver targeted original
content via its own DreamStream-X platform with encrypted Dreamstream
technology deployed in each location.
In addition, Immedia creates original audio production and video content as
well as 3D animation and the supply, installation and maintenance of audio
visual equipment.
Immedia clients include Shell, Subway, BP, Nationwide Building Society, JD
Sports, Weir, BMW, IKEA, and FIFA.
To read more about the business, visit www.immediaplc.com
(http://www.immediaplc.com) or email us on enquiries@immediaplc.com
(mailto:enquiries@immediaplc.com)
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