Asimilar Group PLC Further Investment in Magic Media Works (8824C)
23 June 2021 - 11:12PM
UK Regulatory
TIDMASLR
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).
**ENDS**
Enquiries
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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