7digital Group PLC Extended facility with Investec Bank (3089P)
October 18 2021 - 1:00AM
UK Regulatory
TIDM7DIG
RNS Number : 3089P
7digital Group PLC
18 October 2021
18 October 2021
7digital Group plc
("7digital" or "the Company")
7digital secures GBP1m expansion to revolving credit facility
with Investec Bank
7digital (AIM: 7DIG), the global leader in B2B end-to-end
digital music solutions, is pleased to announce a GBP1 million
increase to its revolving credit facility ("RCF") with Investec
Bank plc ("Investec"), bringing the total facility to GBP2 million
("Enlarged RCF").
The Enlarged RCF will mature in September 2023, in line with the
original terms of the RCF entered into in September 2020 ("Existing
RCF"). The funds drawn continue to attract interest, payable
quarterly, at 6% above the Bank Base Rate.
The Company will issue to Investec 5,437,883 warrants, with an
exercise price of 0.55 pence and a life of 36 months, in
satisfaction of an arrangement fee. The Enlarged RCF is secured by
way of guarantees provided by certain shareholders, including Tamir
Koch and David Lazarus (through Magic Investments S.A.), each a
Board Director, as well as the security in place for the Existing
RCF.
Paul Langworthy, CEO of 7digital, said: "This enlarged credit
facility provides low-cost capital that will satisfy our cash
requirements as we transition to becoming EBITDA positive. As we
stated in our interim results, w e have new contracts representing
significant revenue that are just awaiting signature. While this is
taking longer than originally anticipated, we expect they will be
finalised in the near-term and enable us to generate positive
EBITDA for the full year of 2022. I would like to thank Investec as
well as our significant shareholders for their continued support as
we look to build a sustainable platform for growth."
Tamir Koch, Chairman of 7digital, added: "As a major shareholder
and as Chairman, I'm proud to be able to assist in supporting
7digital and I continue to back the Company whole-heartedly. We
have a significant pipeline of new contracts that we expect to soon
be signed and we are also seeing some exciting prospects
increasingly materialise. Importantly, this capital has been
secured at a standard rate of interest and is non-dilutive barring
a small number of warrants as part of the arrangement fee. All of
this reinforces my confidence in 7digital and in our ability to
deliver a bright future."
Enquiries
7digital c/o +44 20 7618 9100
Paul Langworthy
Arden Partners (Nominated Adviser
and Broker)
Richard Johnson +44 20 7614 5900
Luther Pendragon (Financial PR) +44 20 7618 9100
Harry Chathli, Claire Norbury 7digitalIR@luther.co.uk
About 7digital
7digital is the global leader in B2B end-to-end digital music
solutions, providing a scalable cloud-based platform that enables
companies and brands to connect to its global music catalogue and
rights management system to launch and manage unique and engaging
music experiences. Operating worldwide in over 80 markets and
integrated with more than 300,000 labels and publishers, 7digital's
platform automates the complex and time-consuming processes of
music management, making it easier to access and use music in
streaming services, social media, home fitness, gaming, retail and
more. With best-in-class infrastructure, deep industry expertise
and intelligence tools, 7digital empowers their clients to
innovate, grow and serve tomorrow's music consumer. For more
information, visit http://www.7digital.com/ .
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014, as
implemented into English law ("MAR"). Upon the publication of this
announcement via a Regulatory Information Service, this inside
information will be considered to be in the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFFFIFIFLDLIL
(END) Dow Jones Newswires
October 18, 2021 02:00 ET (06:00 GMT)
7digital (LSE:7DIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
7digital (LSE:7DIG)
Historical Stock Chart
From Apr 2023 to Apr 2024