REG - Zoo Digital Group - Retail Offer

Zoo DigitalAnnouncement

28/04/2023 09:00

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RNS Number : 8641X  Zoo Digital Group PLC  28 April 2023

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE
OR IN PART, IN, INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES AND
POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA
(COLLECTIVELY, THE "UNITED STATES"), AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF
SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR
DISTRIBUTION WOULD BE UNLAWFUL.

THE COMMUNICATION OF THIS ANNOUNCEMENT AND ANY OTHER DOCUMENTS OR MATERIALS
RELATING TO THE RETAIL OFFER AS A FINANCIAL PROMOTION IS ONLY BEING MADE TO,
AND MAY ONLY BE ACTED UPON BY, THOSE PERSONS IN THE UNITED KINGDOM FALLING
WITHIN ARTICLE 43 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL
PROMOTION) ORDER 2005, AS AMENDED (WHICH INCLUDES AN EXISTING MEMBER OF ZOO
DIGITAL GROUP PLC).  ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS
ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO SUCH PERSONS AND WILL BE ENGAGED IN
ONLY WITH SUCH PERSONS.

28 April 2023

ZOO Digital Group PLC

 

("ZOO", the "Group" or the "Company")

 

Retail Offer

 

ZOO Digital Group plc, a leading provider of end-to-end cloud-based
localisation and media services to the global entertainment industry, is
pleased to announce a retail offer to existing retail shareholders via the
BookBuild Platform (the "Retail Offer") to raise up to approximately £0.5
million through the issue of new ordinary shares of £0.01 each in the share
capital of the Company ("Ordinary Shares"). Under the Retail Offer, up to
312,500 new Ordinary Shares (the "Retail Offer Shares") will be made available
at a price of 160 pence per Retail Offer Share (the "Issue Price").

 

In addition to the Retail Offer, the Company announced on 27 April 2023, a
placing of new Ordinary Shares (the "Placing Shares") through an accelerated
bookbuild process (the "Placing") for new Ordinary Shares at the Issue Price.
The Issue Price represents a discount of approximately 13.5 per cent. to the
closing mid-market price of the Ordinary Shares on 26 April 2023, being the
latest practicable date prior to the announcement of the Placing. The price of
the Retail Offer Shares and Placing Shares is equal to the Issue Price.

 

A separate announcement has been made regarding the Placing and sets out its
terms, the reasons for the Placing and use of proceeds. The Retail Offer is
not part of the Placing and completion of the Placing is not conditional on
the completion of the Retail Offer.

 

The Retail Offer is conditional on, inter alia, completion of the Placing and
the Placing Shares and the Retail Offer Shares being admitted to trading on
the AIM market of London Stock Exchange plc. Admission of the Retail Offer
Shares is expected to take place and dealings are expected to commence at 8.00
a.m. on or around 12 May 2023.

 

The Company will provide a presentation in respect of the trading update and
proposed acquisition announced on 27 April 2023 on its website today.

 

Expected Timetable in connection with the Retail Offer

 

 Retail Offer opens                                           11.00 a.m. on 28 April 2023
 Latest time and date for commitments under the Retail Offer  4.30 p.m. on 05 May 2023
 Results of the Retail Offer announced                        7.00 a.m. 09 May 2023
 Admission and dealings in Retail Offer Shares commence       8.00 a.m. 12 May 2023

 

 

Dealing Codes

 

 Ticker                         ZOO
 ISIN for the Ordinary Shares   GB00B1FQDL10
 SEDOL for the Ordinary Shares  B1FQDL1

 

 

 For further enquiries please contact:

 ZOO Digital Group plc                                                +44 (0) 114 241 3700
 Stuart Green - Chief Executive Officer
 Phillip Blundell - Chief Finance Officer
 Kam Bansil - Investor Relations

 Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker)  +44 (0)20 7710 7600

 Fred Walsh / Tom Marsh / Richard Short

                                                                      +44 (0) 20 7496 3000

 Singer Capital Markets (Joint Broker and Retail Offer Coordinator)
 Shaun Dobson / Asha Chotai / Oliver Platts

                                                                      +44 (0) 207 457 2020

 Instinctif Partners
 Matthew Smallwood / Joe Quinlan                                      zoo@instinctif.com

 

 

Bookbuild Retail Offer

 

The Company values its retail shareholder base and believes that it is
appropriate to provide its existing eligible retail shareholders in the United
Kingdom ("Eligible Investors") with the opportunity to participate in the
Retail Offer.

 

The Company is therefore making the Retail Offer open to Eligible Investors in
the United Kingdom through certain financial intermediaries which will be
listed, subject to certain access restrictions, on the following
website: https://www.bookbuild.live/deals/K2QE3Q/authorised-intermediaries
(https://www.bookbuild.live/deals/K2QE3Q/authorised-intermediaries) .

 

Singer Capital Markets Securities Limited is acting as retail offer
coordinator in relation to this Retail Offer (the "Retail Offer Coordinator").

 

Eligible Investors can contact their broker or wealth manager ("Intermediary")
to participate in the Retail Offer. To be appointed as an authorised
Intermediary in connection with the Retail Offer, each Intermediary must be
on-boarded onto the BookBuild Platform and agree to the final terms and the
retail offer terms and conditions, which regulate, inter alia, the conduct of
the Retail Offer on market standard terms and provide for the payment of
commission to any Intermediary that elects to receive a commission and/or fee
(to the extent permitted by the FCA Handbook Rules) from the Retail Offer
Coordinator (on behalf of the Company).

 

Any expenses incurred by any Intermediary are for its own account. Eligible
Investors should confirm separately with their Intermediary whether there are
any commissions, fees or expenses that will be applied by such Intermediary in
connection with any application made through that Intermediary pursuant to the
Retail Offer.

 

The Retail Offer will open to Eligible Investors in the United Kingdom at
11.00 a.m. on 28 April 2023. The Retail Offer is expected to close at 4.30
p.m. on 05 May 2023. Eligible Investors should note that Intermediaries may
have earlier closing times. The Retail Offer may close early if it is
oversubscribed.

 

If any Intermediary has any questions about how to participate in the Retail
Offer on behalf of Eligible Investors, please contact BookBuild
at support@bookbuild.live (mailto:support@bookbuild.live) .

 

The Retail Offer is and will, at all times, only be made to, directed at and
may only be acted upon by those persons who are, shareholders in the Company.
To be eligible to participate in the Retail Offer, applicants must meet the
following criteria before they can submit an order for Retail Offer Shares:
(i) be a customer of one of the participating Intermediaries listed on the
above website; (ii) be resident in the United Kingdom and (iii) be a
shareholder in the Company (which may include individuals aged 18 years or
over, companies and other bodies corporate, partnerships, trusts, associations
and other unincorporated organisations and includes persons who hold their
shares in the Company directly or indirectly through a participating
Intermediary). For the avoidance of doubt, persons who only hold CFDs, spread
bets and/or similar derivative instruments in relation to shares in the
Company are not eligible to participate in the Retail Offer.

 

The Company reserves the right to scale back any order under the Retail Offer
at its discretion. The Company reserves the right to reject any application
for subscription under the Retail Offer without giving any reason for such
rejection.

 

It is vital to note that once an application for Retail Offer Shares has been
made and accepted via an Intermediary, it cannot be withdrawn.

 

The Retail Offer Shares will, when issued, be credited as fully paid and will
rank pari passu in all respects with existing Ordinary Shares including the
right to receive all dividends and other distributions declared, made or paid
after their date of issue.

 

It is a term of the Retail Offer that the total value of the Retail Offer
Shares available for subscription at the Issue Price does not exceed £0.5
million.

 

The Retail Offer is offered in the United Kingdom under the exemption from the
requirement to publish a prospectus in section 86(1)(e) of the Financial
Services and Markets Act 2000. As such, there is no need for the publication
of a prospectus pursuant to the Prospectus Regulation Rules of the Financial
Conduct Authority, or for approval of the same by the Financial Conduct
Authority. The Retail Offer is not being made into any jurisdiction other than
the United Kingdom.

 

No offering document, prospectus or admission document has been or will be
prepared or submitted to be approved by the Financial Conduct Authority (or
any other authority) in relation to the Retail Offer, and investors'
commitments will be made solely on the basis of the information contained in
this announcement and information that has been published by or on behalf of
the Company prior to the date of this announcement by notification to a
Regulatory Information Service in accordance with the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules and the Market Abuse
Regulation (EU Regulation No. 596/2014) ("MAR") as it forms part of the
domestic law of England and Wales by virtue of the European Union (Withdrawal)
Act 2018 (as amended).

 

There is a minimum subscription of £300 per Eligible Investor under the terms
of the Retail Offer. There is no maximum application amount per Eligible
Investor under the terms of the Retail Offer except that the aggregate total
consideration for the Retail Offer shall not exceed £0.5 million. The terms
and conditions on which Eligible Investors subscribe for Retail Offer Shares
will be provided by the relevant Intermediaries including relevant commission
or fee charges.

 

Investors should make their own investigations into the merits of an
investment in the Company. Nothing in this announcement amounts to a
recommendation to invest in the Company or amounts to investment, taxation or
legal advice.

 

It should be noted that a subscription for Retail Offer Shares and investment
in the Company carries a number of risks. Investors should take independent
advice from a person experienced in advising on investment in securities such
as the Retail Offer Shares if they are in any doubt.

 

An investment in the Company will place capital at risk. The value of
investments, and any income, can go down as well as up, so investors could get
back less than the amount invested.

 

Neither past performance nor any forecasts should be considered a reliable
indicator of future results.

 

This announcement should be read in its entirety. In particular, the
information in the "Important Notices" section of the announcement should be
read and understood.

 

Important Notices

 

The content of this announcement has been prepared by and is the sole
responsibility of the Company.

 

The Retail Offer is only open to investors in the United Kingdom who fall
within Article 43 of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (which includes an existing member of the
Company).

 

This announcement and the information contained herein is restricted and is
not for publication, release or distribution, directly or indirectly, in whole
or in part, in or into or from the United States (including its territories
and possessions, any state of the United States and the District of Columbia
(the "United States" or "US")), Australia, Canada, Japan, the Republic of
South Africa or any other jurisdiction where to do so might constitute a
violation of the relevant laws or regulations of such jurisdiction.

 

The Retail Offer Shares have not been and will not be registered under the US
Securities Act of 1933, as amended (the "US Securities Act") or under the
applicable state securities laws of the United States and may not be offered
or sold directly or indirectly in or into the United States or to or for the
account or benefit of any US person (within the meaning of Regulation S under
the US Securities Act) (a "US Person"). No public offering of the Retail
Offer Shares is being made in the United States. The Retail Offer Shares are
being offered and sold outside the United States in "offshore transactions",
as defined in, and in compliance with, Regulation S under the US Securities
Act. In addition, the Company has not been, and will not be, registered under
the US Investment Company Act of 1940, as amended.

 

This announcement does not constitute an offer to sell or issue or a
solicitation of an offer to buy or subscribe for Retail Offer Shares in the
United States, Australia, Canada, Japan, the Republic of South Africa or any
other jurisdiction in which such offer or solicitation is or may be unlawful.
No public offer of the securities referred to herein is being made in any such
jurisdiction.

 

The distribution of this announcement may be restricted by law in certain
jurisdictions and persons into whose possession any document or other
information referred to herein comes should inform themselves about and
observe any such restriction. Any failure to comply with these restrictions
may constitute a violation of the securities laws of any such jurisdiction.

 

Singer Capital Markets Securities Limited ("Singer"), which is authorised and
regulated in the United Kingdom by the FCA is acting solely for the Company
and no-one else in connection with the transactions and arrangements described
in this announcement and will not regard any other person (whether or not a
recipient of this announcement) as a client in relation to the transactions
and arrangements described in this announcement. Singer is not responsible to
anyone other than the Company for providing the protections afforded to
clients of Singer or for providing advice in connection with the contents of
this announcement, or the transactions and arrangements described in this
announcement.

 

Stifel Nicolaus Europe Limited ("Stifel"), which is authorised and regulated
in the United Kingdom by the FCA is acting solely for the Company and no-one
else in connection with the transactions and arrangements described in this
announcement and will not regard any other person (whether or not a recipient
of this announcement) as a client in relation to the transactions and
arrangements described in this announcement. Stifel is not responsible to
anyone other than the Company for providing the protections afforded to
clients of Stifel or for providing advice in connection with the contents of
this announcement or the transactions and arrangements described in this
announcement.

 

The value of Ordinary Shares and the income from them is not guaranteed and
can fall as well as rise due to stock market movements. When you sell your
investment, you may get back less than you originally invested. Figures refer
to past performance and past performance is not a reliable indicator of future
results. Returns may increase or decrease as a result of currency
fluctuations.

 

Certain statements in this announcement are forward-looking statements which
are based on the Company's expectations, intentions and projections regarding
its future performance, anticipated events or trends and other matters that
are not historical facts. These forward-looking statements, which may use
words such as "aim", "anticipate", "believe", "intend", "estimate", "expect"
and words of similar meaning, include all matters that are not historical
facts. These forward-looking statements involve risks, assumptions and
uncertainties that could cause the actual results of operations, financial
condition, liquidity and dividend policy and the development of the industries
in which the Company's businesses operate to differ materially from the
impression created by the forward-looking statements. These statements are not
guarantees of future performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Given those risks and uncertainties, prospective investors are cautioned not
to place undue reliance on forward-looking statements.

 

These forward-looking statements speak only as at the date of this
announcement and cannot be relied upon as a guide to future performance. The
Company and Singer expressly disclaim any obligation or undertaking to update
or revise any forward-looking statements contained herein to reflect actual
results or any change in the assumptions, conditions or circumstances on which
any such statements are based unless required to do so by the Financial
Conduct Authority, London Stock Exchange plc or applicable law.

 

The information in this announcement is for background purposes only and does
not purport to be full or complete. None of Singer, Stifel or any of their
respective affiliates, accepts any responsibility or liability whatsoever for,
or makes any representation or warranty, express or implied, as to this
announcement, including the truth, accuracy or completeness of the information
in this announcement (or whether any information has been omitted from the
announcement) or any other information relating to the Company or associated
companies, whether written, oral or in a visual or electronic form, and
howsoever transmitted or made available or for any loss howsoever arising from
any use of the announcement or its contents or otherwise arising in connection
therewith. Singer, Stifel and their respective affiliates, accordingly
disclaim all and any liability whether arising in tort, contract or otherwise
which they might otherwise be found to have in respect of this announcement or
its contents or otherwise arising in connection therewith.

 

This announcement does not constitute a recommendation concerning any
investment decision with respect to the Retail Offer. The price of shares and
any income expected from them may go down as well as up and subscribers may
not get back the full amount invested upon disposal of the shares. Any
indication in this announcement of the price at which the Ordinary Share have
been bought or sold in the past cannot be relied upon as a guide to future
performance. Persons needing advice should consult an independent financial
adviser. No statement in this announcement is intended to be a profit forecast
and no statement in this announcement should be interpreted to mean that
earnings or target dividend per share of the Company for the current or future
financial years would necessarily match or exceed the historical published
earnings or dividends per share of the Company.

 

Neither the content of the Company's website (or any other website) nor the
content of any website accessible from hyperlinks on the Company's website (or
any other website) is incorporated into or forms part of this announcement.
The Retail Offer Shares to be issued or sold pursuant to the Retail Offer will
not be admitted to trading on any stock exchange other than the AIM market of
London Stock Exchange plc.

 

Information to Distributors

 

UK Product Governance Requirements

 

Solely for the purposes of the product governance requirements of Chapter 3 of
the FCA Handbook Product Intervention and Product Governance Sourcebook (the
"UK MiFIR Product Governance Requirements"), and disclaiming all and any
liability, whether arising in tort, contract or otherwise, which any
"manufacture" (for the purposes of the UK MiFIR Product Governance
Requirements) may otherwise have with respect thereto, the Retail Offer Shares
have been subject to a product approval process, which has determined that the
Retail Offer Shares are: (i) compatible with an end target market of retail
investors and investors who meet the criteria of professional clients and
eligible counterparties, each as defined in paragraphs 3.5 and 3.6 of COBS;
and (ii) eligible for distribution through all permitted distribution channels
(the "Target Market Assessment"). Notwithstanding the Target Market
Assessment, distributors should note that: the price of the Retail Offer
Shares may decline and investors could lose all or part of their investment;
the Retail Offer Shares offer no guaranteed income and no capital protection;
and an investment in the Retail Offer Shares is compatible only with investors
who do not need a guaranteed income or capital protection, who (either alone
or in conjunction with an appropriate financial or other adviser) are capable
of evaluating the merits and risks of such an investment and who have
sufficient resources to be able to bear any losses that may result therefrom.
The Target Market Assessment is without prejudice to any contractual, legal or
regulatory selling restrictions in relation to the Retail Offer.

 

For the avoidance of doubt, the Target Market Assessment does not constitute:
(a) an assessment of suitability or appropriateness for the purposes of
Chapters 9A or 10A respectively of COBS; or (b) a recommendation to any
investor or group of investors to invest in, or purchase, or take any other
action whatsoever with respect to the Retail Offer Shares. Each distributor is
responsible for undertaking its own target market assessment in respect of the
Retail Offer Shares and determining appropriate distribution channels.

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