Melbourne, Australia – 13 June 2024 – Vinyl Group Ltd (ASX: VNL), Australia’s only ASX-listed music company, today announced a fully underwritten pro rata accelerated non-renounceable entitlement offer to raise approximately A$5.4 million. This strategic move aims to enhance the company’s growth trajectory and bolster its market presence.
Highlights:
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Significant Cash Reserves: The initiative is set to increase cash reserves by A$5.15 million.
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Focused Investment: Funds will be allocated to accelerate user acquisition on Vinyl and Vampr platforms, reduce technology costs of the Jaxsta platform, and expand the media business.
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Strong Backing: The offer is fully underwritten by Peloton Capital, serving as Lead Manager, and Red Leaf Securities as Sub-Underwriter.
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Key Investor Support: Notable participation from significant shareholders Richard White and Robert Millner, contributing A$2.4 million, underscores strong internal confidence in Vinyl Group’s future.
Entitlement Offer Details:
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Offer Structure: 1-for-17 offer of new fully paid ordinary shares at A$0.098 per New Share, representing an 11% discount to the last closing price and a 10% discount to the 10-day VWAP through 12 June 2024.
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Share Issuance: Approximately 55 million new shares will be issued, accounting for 5.56% of the total issued capital.
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Institutional and Retail Components: The offer comprises an institutional component (13-14 June 2024) and a retail component (19 June - 3 July 2024).
Institutional Entitlement Offer: Eligible institutional shareholders in Australia and New Zealand will be invited to participate in the Institutional Entitlement Offer. Institutional entitlements not taken up will be offered to other eligible institutional investors.
Retail Entitlement Offer: Eligible retail shareholders with a registered address in Australia or New Zealand will have the opportunity to participate in the Retail Entitlement Offer at the same offer price and ratio. Retail shareholders can also apply for additional New Shares under a Shortfall Facility.
Participation of Directors and Significant Shareholders: The commitment of A$2.4 million from prominent shareholders Richard White and Robert Millner, alongside executive and non-executive directors, is a key highlight. Their substantial investment reflects a robust belief in Vinyl Group’s growth prospects and strategic direction.
Indicative Timetable:
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Record Date: 17 June 2024
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Retail Entitlement Offer Opens: 19 June 2024
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Retail Entitlement Offer Closes: 3 July 2024
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Allotment of New Shares: 10 July 2024
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Normal Trading Commences: 11 July 2024
About us:
Vinyl Group is a leading tech solution provider in the music industry, connecting creators and consumers globally. With platforms like Vinyl.com, Vampr, and Jaxsta, and publishing iconic titles under The Brag Media, Vinyl Group empowers the global music ecosystem.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
