Further Investment in Magic Media Works
23 June 2021
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 £13 million fund raise by Magic Media (of which £11.5 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 £693,564 in loan notes ("Loan Notes"), in addition to the £298,204 investment in Loan Notes which was announced on 7 December 2020. Accordingly, the Company's total investment in this funding round by ROXi is £991,768.
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 £1.10 for the £693,564 Loan Notes and at £1.00 for the £298,204 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, £500,000 of convertible loan notes, £991,768 of Loan Notes and Warrants to acquire 928,717 shares for £991,768. 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 £13 million by Magic Media which is being led by Sun Capital Partners. The fundraise is being conducted in two rounds: the first at £1.00 per share; and the second at £1.10 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 £2.9 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 £11.5 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.