7digital Group PLC Revolving credit facility with Investec Bank (3720A)
September 29 2020 - 1:00AM
UK Regulatory
TIDM7DIG
RNS Number : 3720A
7digital Group PLC
29 September 2020
The information contained within this announcement is deemed by
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29 September 2020
7digital Group plc
("7digital" or the "Company")
7digital adds GBP1m revolving credit facility with Investec Bank
for strategic growth
7digital (AIM: 7DIG), the global leader in B2B end-to-end
digital music solutions, is pleased to announce that on 28
September 2020 it entered into a GBP1 million secured revolving
credit facility ("RCF") with Investec Bank plc ("Investec").
The RCF will allow 7digital additional capability, alongside the
GBP6 million gross funds raised recently, to progress the
commercial opportunities it is pursuing as well as expand into
strategic market verticals such as home fitness, artist
monetisation, and social media. Capitalising on more than a decade
of innovation and in-house expertise, 7digital has developed the
technologies, scale and capabilities that uniquely position the
company to be the go-to-platform to power music streaming services
and support new models and formats for music consumption that are
driving the industry forward.
The RCF is for a period of 36 months to provide access to GBP1
million in additional capital. The funds drawn attract interest,
payable quarterly, at 6% above the Bank Base Rate. The Company will
issue to Investec 1,382,488 warrants with an exercise price of 2.17
pence in part satisfaction of an arrangement fee. The RCF is
secured by way of a debenture from the Company together with
guarantees provided by certain shareholders, including Tamir Koch
and David Lazarus (through Magic Investments S.A.), each a Board
Director.
Tamir Koch, Chairman of 7digital, said: "We are delighted to
complete this non-dilutive financing which, together with our
recent oversubscribed equity raise, provides 7digital with a total
of GBP7 million in capital to progress our growth strategy. We
thank Investec for forming this partnership which further
demonstrates the potential of the business."
Paul Langworthy, CEO of 7digital, said: "We are pleased to have
secured this loan facility which will bolster our balance sheet
further and facilitate our strategy to expand in rapid-growth
industries of home fitness, artist monetisation and social media
that consider music a core component to their loyalty and growth
strategies. Having access to low-cost capital provides the
financial strength and flexibility for 7digital to progress our
articulated strategy, win new business and deliver shareholder
returns."
Enquiries
7digital 020 7099 7777
Paul Langworthy, CEO
Arden Partners (Nominated Adviser and Broker) 020 7614 5900
Richard Johnson, Benjamin Cryer
Luther Pendragon (Financial PR) 020 7618 9100
Harry Chathli, Joe Quinlan, Elliot Fradd
About 7digital ( www.7digital.com/ )
7digital is the global leader in B2B end-to-end digital music
solutions. The core of its business is the provision of robust and
scalable technical infrastructure, licensing expertise and
extensive global music rights used to create music and music video
streaming and radio services for a diverse range of customers.
These include consumer and social media brands, online fitness
technologies, mobile carriers, broadcasters, automotive systems,
record labels and retailers. 7digital also offers radio production
and music curation services, editorial strategy and content
management expertise.
7digital fosters industry growth and innovation by simplifying
access to music for clients. From years of being the largest
independent producer of programming for the BBC and powering
services for partners like Triller, Soundtrack Your Brand, Global
Eagle, GrandPad and Fender, 7digital is perfectly positioned to
lead innovation at the intersection of digital music and
next-generation radio services.
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END
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