REG - One Media iP Group - Disposal of TCAT

One Media IPAnnouncement

27/11/2024 07:00

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RNS Number : 7680N  One Media iP Group PLC  27 November 2024

One Media iP Group plc

("One Media" or "Company" or "Group")

 

Disposal of TCAT

 

One Media announces that it has entered into a sale and purchase agreement
("SPA") with Round Group Limited ("Round") to dispose of its entire interest
in the capital of TCAT Limited. The SPA is not subject to any conditions and
signing and completion occurred late on 26 November 2024.

 

The consideration for the disposal comprises ordinary shares in the capital of
Round, equal to a 5% holding in Round. One Media will also make a loan to
Round of £175,000 which carries interest at Bank of England base rate and is
repayable in 24 equal instalments commencing in March 2025.

 

TCAT is a Software as a Service (SaaS) platform, developed as a means of
automating the difficult and time-consuming task of monitoring digital music
releases, for instances of unauthorised exploitation. The TCAT software is
quick and powerful, capable of scanning legitimate global digital music stores
for unauthorised and duplicated releases, providing 'up-to-the-moment'
reporting. TCAT was developed in-house by One Media as a technical arm to
protect its own catalogue of over 400,000 music rights. Its development over 4
years has now led it to be offered to the wider music industry and has been
established now as a separate limited company subsidiary within the Group.

 

TCAT is non-core to the Group and is still in a beta phase of development with
limited revenues but substantial operating costs.

 

Round is a tech-enabled digital agency using content, creators and communities
to propel the world's leading brands and artists. Round is involved in
marketing campaigns  driven by proprietary technology that streamline every
aspect, from planning to reporting. Specifically, Round has developed and
markets a TikTok audio analytics tool with similarities to the operational
methods of TCAT, being designed to spot influential audios before they go
viral, match sounds that TikTok may have missed and highlight the creators
driving a sound's growth.

 

For the 2023 Financial Year, TCAT contributed an operating loss of £566,632
to OMIP's overall operating profit of £498,138. As at 31 October 2023, TCAT
had net assets of £ 258,008. The impact of the Disposal will, therefore, not
be material to the Group.

The Disposal marks the Group's withdrawal from non-core operations.

Michael Infante, Group CEO, commented:

"The disposal of TCAT is consistent with our stated strategy and is another
positive step as we simplify the Group. TCAT was a distraction to our main
profitable operations. Round is better equipped to exploit TCAT to its maximum
potential and we retain a stake to benefit from future growth."

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

The person who arranged the release of this information is Michael Infante,
Chief Executive Officer of the Company.

 

 

 

 One Media IP Group Plc
 Michael Infante                                Chief Executive

                                                Tel: +44 (0)175 378 5500

 Claire Blunt                                   Chairman

                                                Tel: +44 (0)175 378 5501

 Cairn Financial Advisers LLP                   Nominated Adviser
 Liam Murray / Jo Turner / Ludovico Lazzaretti  Tel: +44 (0)20 7213 0880

 Cavendish Capital Markets Limited              Broker
 Giles Balleny (Corporate Finance)              Tel: +44 (0)20 7397 8900

 Michael Johnson (Sales)

 Claire Turvey, Fourth Pillar                   Financial PR

                                                Tel: +44 (0)7850 548 198

 

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