TIDMR4E
RNS Number : 5240N
Reach4Entertainment Enterprises PLC
26 October 2016
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
26 October 2016
reach4entertainment enterprises plc
('r4e', 'the Company' or 'the Group')
Proposed placing to raise up to GBP2,000,000
r4e, the transatlantic media and entertainment company,
announces its intention to undertake a placing (the "Placing") of
new ordinary shares in the Company ("Ordinary Shares") at a price
not less than 1.5p per Ordinary Share to raise up to GBP2,000,000
(before expenses).
The Placing, which will be undertaken within the Company's
existing share authorities, will be conducted by way of an
accelerated book build ("Bookbuild") and Allenby Capital Limited
will be acting as sole bookrunner in relation to the Bookbuild. The
Placing will result in the issue of not more than 133,333,334 new
Ordinary Shares (the "Placing Shares").
The number of Placing Shares, pricing and the aggregate proceeds
to be raised through the Placing will be finally determined
following completion of the Bookbuild process. A further
announcement in respect of these details will be made following
completion of the Bookbuild process. The timing of the closing of
the book and allocations are at the discretion of Allenby Capital
Limited (after discussion with the Company).
Certain of the Directors of the Company and current significant
shareholders have indicated an intention to participate in the
Placing. Further details of the Placing and confirmed participation
by the Directors and significant shareholders (if relevant) will be
set out in the announcement to be made on the closing of the
Bookbuild which is expected to be made later today. Members of the
public will not be entitled to participate in the Placing.
The Placing Shares will be issued credited as fully paid and
will rank pari passu with the existing ordinary shares, including
the right to receive all dividends and other distributions
declared, made or paid on or in respect of the ordinary shares
after the date of issue of the Placing Shares.
Reasons for the Placing and use of proceeds
The net proceeds of the Placing will be used to establish the
foundations for the next stage of the Group's development as
follows:
1. leveraging the market leadership positions in London and New
York to expand geographically, starting with Dewynters in
Germany;
2. launching a new data-driven marketing and analytics division; and
3. re-organisation of key functions to support the above developments.
Dewynters in Germany
Dewynters in Germany ("DG") was launched in October 2016 to
provide a presence for the Group in the world's third largest
commercial theatre market. With Michael Hildebrandt at its helm
(until recently Director of Strategy and Development at Stage
Entertainment Germany), it is the Board's view that DG will be the
first agency of its kind in Central Europe to provide creative,
consultancy, and experiential events with two key service
models:
-- strategic and commercial support for brands in the entertainment and leisure industry; and
-- event creation for major brands looking for
entertainment-driven solutions to marketing challenges
The Group is establishing an interactive strategy among its now
three agencies, supporting the award and transfer of individual
shows and combining projects (including the new data marketing and
analytics initiative) across all three markets.
Data-Driven Marketing & Analytics Division (under the Jampot
subsidiary)
The Group's objective is to assist clients to sell more tickets,
at a higher yield, with a lower cost. The Group has a strong
background in data-driven marketing (significantly enhanced by the
acquisition of Jampot) and improvements in application program
interface (API) technology now enables r4e to analyse the
effectiveness of its advertising campaigns. With natural access to
a specific data set relating to ticketing and digital and offline
media, the Group intends to capitalise on Jampot's experience of
data analysis to build its own marketing analytics service.
Re-organisation of key functions
In order to support the above initiatives, the Group is
re-aligning key functions to accelerate adoption of a data-driven
marketing approach and will seek to leverage specific current
services and assets, including design and digital media buying,
with analytics to support and enhance the economics of geographical
expansion, starting with Germany.
Trading Update
In September 2016, the Company reported a strong set of figures
for the six months to 30th June 2016 and while the second half is
expected to be more challenging, with fewer shows being launched,
the business remains on track to meet expectations for the current
year. Looking further ahead into 2017 and beyond, the Company is
well positioned to benefit from its core businesses in London and
New York and to also benefit from the investment proposed
today.
Proposed Board appointments
In line with the board's strategy for growth, r4e also announces
the proposed appointment of two non-executive directors to the
board of the Company. Lord Michael Grade is proposed as a
non-executive director. Lord Grade was formerly Chairman of the
BBC, Executive Chairman of ITV plc and has held positions on the
board of a number of public companies, including Pinewood Group
plc. Mr Grade is currently a director of Gate Ventures plc, a
significant shareholder in the Company. It is also proposed that a
second non-executive director is appointed to the board. The
Company is in advanced discussions with a preferred candidate with
a great deal of experience of the entertainment industry and who
currently holds a senior executive role at a global entertainment
group. The appointments of the proposed directors are subject to
the satisfactory completion of the usual regulatory due diligence
process and further updates will be made at the appropriate
time.
David Stoller, Chairman of r4e, said: "r4e is a different
company today. Our balance sheet is healthy with an GBP11.0 million
reduction in borrowings at 30 June 2016 compared to 30 June 2015.
We have strengthened our management team across our core
businesses, which continue to be market leaders, and our strategic
plan is in place: to grow by leveraging our remarkable capacities
and creativity and strategy to expand into new geographies and
great new business opportunities, all supported and driven by a
focussed commitment to data-driven marketing and analytics. I look
forward to welcoming two extremely talented new individuals to our
Board to help position us for our next stage of development. Our
future is exciting, and we look forward to providing further
updates."
Enquiries:
reach4entertainment enterprises
plc
+44 (0) 20 7968
David Stoller, Executive Chairman 1655
Allenby Capital (Nominated Adviser +44 (0) 20 3328
and Broker) 5656
Jeremy Porter/James Reeve (Corporate
Finance)
Katrina Perez/Kelly Gardiner
(Corporate Broking)
Novella Communications (Financial +44 (0) 20 3151
PR) 7008
Tim Robertson
Toby Andrews
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCFQLFLQBFFFBF
(END) Dow Jones Newswires
October 26, 2016 07:12 ET (11:12 GMT)
Reach4entertainment Ente... (LSE:R4E)
Historical Stock Chart
From Apr 2024 to May 2024
Reach4entertainment Ente... (LSE:R4E)
Historical Stock Chart
From May 2023 to May 2024