TIDMR4E
RNS Number : 0168X
Reach4Entertainment Enterprises PLC
25 April 2019
25(th) April 2019
reach4entertainment enterprises plc
("r4e" or "the Company" or "the Group")
Renewal of Media Trading Agreements
reach4entertainment enterprises plc (AIM: R4E), the
entertainment marketing communications group, is pleased to
announce that its subsidiaries, Dewynters Limited ("Dewynters") and
Spot and Company of Manhattan, INC. ("SpotCo") have renewed their
existing media buying agreements with, respectively, Miroma
International Limited and Miroma Outcomes LLC (collectively,
"Miroma") (the "Agreements"). In addition, the media buying
agreements have been extended to Agency Press Limited (trading as
"Sold Out") and Wake the Bear Limited ("Wake the Bear"), in order
to drive additional value to the respective agencies and their
client bases (the "New Agreements").
In their previous form, as announced on 12 February 2018, the
Agreements legislated for the provision of media trading services
from Miroma to Dewynters and SpotCo for which Dewynters and SpotCo
were compensated via a referral fee.
To allow for additional trading opportunities by these parties,
each contract has been amended to allow for the provision of
Ancillary Services by Dewynters, SpotCo, Sold Out and Wake the Bear
to Miroma or its client base (the "Amended Agreements"). These
Ancillary Services cover the scope of works that Dewynters, SpotCo,
Sold Out and Wake the Bear provide to its core client base today.
These services include media planning, media buying, media
inventory trading services, creative services content production
services, strategy and website design. The Agreements have been
amended so that the provision of these services would be based on
the respective agency's rate card, thereby ensuring that Miroma
would be dealt with in the same way as any third party client.
Miroma are companies wholly owned by Miroma Holdings Limited, a
company of which Marc Boyan, the CEO of r4e, is both a director and
the controlling shareholder. The Miroma group operates a successful
media buying business which works with brands, media agencies and
media owners to enable brand owners to extract additional value
from their marketing budgets.
The Amended Agreements and the New Agreements are expected to
result in efficiencies in media buying for Dewynters, SpotCo, Sold
Out and Wake the Bear, through the expertise and purchasing power
of Miroma, for the benefit of r4e and its clients, as well as
providing additional referral income for r4e based on its media
spend with Miroma. Commission rates paid by Miroma to r4e are
calculated on a case by case basis, however any rates applied will
always fall within pre-defined parameters, which have been agreed
and set by the Board and are based on market rates paid by Miroma
to independent third parties. The Amended Agreements and the New
Agreements have been entered into on an arm's-length basis and
negotiated and approved by the independent directors of r4e.
The Amended Agreements and the New Agreements will be reviewed
annually by the relevant counterparty and will continue unless
terminated by either counterparty, providing three months' notice.
The Amended Agreements and the New Agreements will also be reviewed
annually by the Directors of r4e that are independent of Marc
Boyan.
The entering into of the Amended Agreements by Dewynters, SpotCo
and the New Agreements by Sold Out and Wake the Bear constitute
related party transactions pursuant to Rule 13 of the AIM Rules for
Companies due to Marc Boyan's interest in Miroma. Accordingly, the
independent directors of r4e consider, having consulted with the
Company's nominated adviser, Grant Thornton UK LLP, that the terms
of the Amended Agreements and the new Agreements are fair and
reasonable insofar as the Company's shareholders are concerned.
For information, please contact:
reach4entertainment enterprises Phone: +44 (0)20 7968 1655
plc
Marc Boyan, CEO
Paul Summers, COO
Yellow Jersey, PR Phone: +44 (0)7747 788 221 / +44
(0)7544 275 882
Charles Goodwin Email: r4e@yellowjerseypr.com
Harriet Jackson
Annabel Atkins
Grant Thornton, NOMAD Phone: +44 (0)20 7383 5100
Philip Secrett
Jen Clarke
Seamus Fricker
Dowgate Capital, Broker Phone: +44 (0)20 3903 7715
James Serjeant
David Poutney
Notes to Editors
reach4entertainment enterprises plc ("r4e") operates a
collection of theatrical, film and live entertainment marketing,
PR, advertising and display agencies, across the world. The Company
uses its extensive experience in the live entertainments space to
create value through investing in innovative and established
agencies that provide communications services to a range of clients
involved with theatre, film, concerts and more.
For further information on r4e you are invited to visit the
Company's website at www.r4e.com.
Spot and Company of Manhattan, INC.
A global leading full-service arts and live entertainment
advertising and marketing agency. In an ever-changing media
landscape, it stays ahead of the curve with a mix of bold
positioning through interactive, broadcast, environmental and print
campaigns.
https://www.spotnyc.com
Dewynters Limited
A leading independent arts, events and live entertainment
marketing specialist. The agency's work in theatre, museums,
attractions, sport and music is seen right across the globe.
http://www.dewynters.com
Newman Displays Limited
The UK's leading large-scale outdoor signage, front of house,
marquee display and installation company. Clients include major
West End theatre productions, leading film companies, cinemas and
major global events.
http://www.newman-displays.com
Wake the Bear Limited
A marketing communications agency that supports businesses to
invent, reposition and regenerate their brands in order to grow.
The agency carries out brand strategy, communications planning and
end-to-end activation.
http://wakethebear.co.uk
Story House PR Limited
A new public relations agency for the theatre and live
entertainment industries, operating in the UK and internationally.
The agency crafts engaging campaigns for audiences, driven by
strategy: the right channel, at the right time, with the right
message. Fully integrating PR with paid media and social, ensuring
all elements of a campaign are working together, Story House
collaborates with its clients to ensure its work is dedicated to
realising their ambitions.
www.storyhousepr.co.uk
Buzz 16 Productions
Buzz 16 is an independent production company, which creates both
short and long form sports orientated content. The Company was
co-founded by former Manchester United player and respected
broadcaster, Gary Neville, along with former Sky Sports Premier
League producer, Scott Melvin.
https://buzz16.uk
Sold Out
Sold Out is an independent full service advertising agency,
specialising in arts and entertainment for over 25 years.
https://soldout.london
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END
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