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    Vinyl Group completes entitlement offer, raising $3.29m

    Vinyl Group, which owns The Brag Media, has successfully completed the institutional component of its Institutional Entitlement Offer and raised $3.29 million before transaction costs.

    A Retail Entitlement Offer, which is fully underwritten and will open on Wednesday 19 June, will raise the remaining $2.12 million.

    Josh Simons, CEO and executive director of Vinyl Group, told the ASX: “We are emboldened by the results of the institutional component of the Entitlement Offer as we move on to the retail component for all eligible shareholders.

    “We will be able to start the new financial year on strong footing to focus on our key growth activities.”

    The company told the ASX: “New shares that will be issued under the Institutional Entitlement Offer will rank equally with existing fully paid ordinary shares.”

    It also noted that the “settlement of New Shares” will happen on Wednesday 19 June, with new shares to be allotted on Thursday 20 June.

    Last week, Vinyl Group said it was looking to drive growth as the business pushed towards a $5.4 million accelerated entitlement offer.

    The offer is a 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.

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

    At the time, 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 Media. It has paused trading until the transaction is finalised.

    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.

    Top image: Josh Simons

    The post Vinyl Group completes entitlement offer, raising $3.29m appeared first on Mediaweek.

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