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    Vinyl Group proposes entitlement offer to boost business growth

    Vinyl Group is looking to drive growth as the business pushes towards a $5.4 million accelerated entitlement offer.

    The offer is 1-for-17 offer of new fully paid ordinary shares at $0.098 per new share – meaning that eligible existing shareholders will be able to subscribe for one new share for every 17 shares held, as the company works to raise proceeds of approximately $5.4 million, up $5.15 million.

    Vinyl Group told the ASX it will look to use the funds to “accelerate user acquisition efforts on its Vinyl and Vampr platforms,” and to “reduce technology costs of the Jaxsta platform” as well as growing the company’s media business, The Brag. It has paused trading until the transaction is finalised.

    The offer is fully underwritten by Peloton Capital and Red Leaf Securities. CEO of WiseTech Global, Richard White, executive chairman of Soul Patts, Robert Millner, executive director and CEO of Vampyr, Josh Simons, and non executive director Ken Gaunt have indicated that they will commit $2.4 million through taking up the entitlement and shortfall offer.

    The move comes after Luke Girgis left The Brag Media – owned by Vinyl Group – earlier this month. The publisher and managing director exited six months after he sold the business to Vinyl Group in a $10m deal: $8 million cash, plus a further $2 million in cash or stock based on financial performance.

    Vinyl Group announced the leadership change, which it said followed a “thorough review of The Brag Media.” Jessica Hunter has been promoted to head of The Brag Media, and Lars Brandle promoted to head of content. Poppy Reid remains editor-in-chief.

    The review and leadership changes will result in savings of $750,000 over the next year, the business said.

    When Girgis and his co-founder sold The Brag Media at the end of last year, Girgis moved from CEO to publisher and managing director as a full time employee.

    Vinyl Group rebranded from Jaxsta just weeks before it acquired The Brag, funded by an $11 million placement and debt facility from Vinyl Group investor Richard White.

    The post Vinyl Group proposes entitlement offer to boost business growth appeared first on Mediaweek.

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