RNS Number : 8824C

Asimilar Group PLC

23 June 2021

Asimilar Group Plc

("Asimilar" or the "Company")

Further Investment in Magic Media Works (T/A "ROXi")

Asimilar Group Plc, the AIM quoted investment company focused on technology opportunities in the fields of big data, machine learning, telematics and the Internet of Things (IoT), is pleased to announce that it has made a further investment in Magic Media Works Limited trading as ROXi ("Magic Media"), as part of a GBP13 million fund raise by Magic Media (of which GBP11.5 million has been raised to date) to progress its rollout of the ROXi music entertainment experience on its Console, Smart TV and Pay TV platforms.

Asimilar is participating in the fund raise by Magic Media, pursuant to its pre-emption rights, and investing a further GBP693,564 in loan notes ("Loan Notes"), in addition to the GBP298,204 investment in Loan Notes which was announced on 7 December 2020. Accordingly, the Company's total investment in this funding round by ROXi is GBP991,768.

Interest will be paid on the Loan Notes at 5%, payable annually in arrears on the anniversary of the Loan Note subscription. The Loan Notes expire on 31 January 2026. Magic Media can elect to satisfy the interest through the issuance of further Loan Notes or shares to the Loan Note holder. Each Loan Note has a warrant attached which gives the holder the right to subscribe for a share in Magic Media at GBP1.10 for the GBP693,564 Loan Notes and at GBP1.00 for the GBP298,204 Loan Notes at any time during the life of the Loan Note ("Warrant"). The exercise of the Warrants can be carried out by offsetting the exercise subscription due against the outstanding loan amount, effectively resulting in a cashless exercise.

Following its new investment, Asimilar holds 1,646,682 shares, which represents 6.1% of the issued share capital, GBP500,000 of convertible loan notes, GBP991,768 of Loan Notes and Warrants to acquire 928,717 shares for GBP991,768. Asimilar also holds options over a further 95,000 ordinary shares in Magic Media.

The subscription forms part of a wider equity and loan note fundraise of up to GBP13 million by Magic Media which is being led by Sun Capital Partners. The fundraise is being conducted in two rounds: the first at GBP1.00 per share; and the second at GBP1.10 per share.

Proceeds of the fund raise by Magic Media will be used to expand the capabilities and reach of the ROXi music entertainment experience to additional Smart TV platforms during FY 2021 and FY 2022 and to expand marketing activities and territory reach.

Magic Media saw strong growth in FY2020 with a 94% increase in live subscriptions * year-on-year and revenues growing 38% year on year to GBP2.9 million.

Rob Lewis, CEO of Magic Media, said: "The past year has seen an increased focus on home entertainment with rapid increase in consumers connecting their TVs to digital entertainment services like Netflix over the internet. Given the wide appeal of digital music entertainment in the home, ROXi sees significant opportunities for growth across all the major ROXi platforms over the coming years. We are delighted to see so many existing investors participating in the Sun Capital Partners led round."

John Taylor, Chairman of Asimilar, said : "We are pleased with ROXi's progress, in particularly its progression from a dedicated hardware proposition to a multi-platform, subscription Pay TV and Smart TV music entertainment experience. The delivery of ROXi's unique entertainment mix on an increasingly large number of third party Smart TV and Pay TV platforms opens up much more rapid growth opportunities for ROXi's business."

In addition to the GBP11.5 million already raised, Magic Media is in negotiations with a number of additional investors on further investment and will make further announcements as and when these negotiations conclude.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).



Asimilar Group plc

John Taylor, Non-Executive Chairman via Buchanan

Cairn Financial Advisers LLP

Sandy Jamieson, Liam Murray Tel: +44 20 7213 0880

Peterhouse Capital Limited

Duncan Vasey / Lucy Williams Tel: + 44 20 7220 9797

Buchanan Communications Limited

Richard Oldworth / Chris Lane Tel: +44 (0) 20 7466 5000

* Live Subscriptions are valid premium subscriptions across all platforms and territories including pre-licensed subscriptions, trial subscriptions and pay annual and pay monthly paid subscriptions.

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(END) Dow Jones Newswires

June 23, 2021 09:12 ET (13:12 GMT)

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