One Media raising fresh funds and debt to acquire more media rights

31st Aug 2018 11:10

(Sharecast News) - Intellectual property owner and controller of music and video rights One Media IP Group announced a proposed placing and subscription to raise a minimum of £1.9m of new equity capital on Friday, at an issue price of 6p per new ordinary share, as well as a proposed issue of up to £6m of loan notes.The AIM-traded company said the placing was being conducted by way of an accelerated bookbuild, which was launched immediately following its announcement.It said the total number of new ordinary shares would be determined following the bookbuild, with Panmure Gordon acting as sole broker.The placing price of 6p per share represented a premium of 240% to the price of 2.5p per share at which Lord Michael Grade and Ivan Dunleavy first invested in the company in December 2017, the board noted.It also said the debt funding of up to £6m gross in unsecured fixed rate loan notes was to be provided by BGF.The loan notes would be split into three tranches of £1.9m, £2.325m and £1.775m respectively.One Media IP said the first tranche would be drawn down immediately on admission, with the second and third tranches to be available for drawdown for a period of 24 months from 30 August, subject to certain conditions being satisfied, including the granting of approval to the draw down by BGF's internal investment committee."The company intends that the net proceeds from the equity fundraise and the issue of the loan notes will be used to acquire music publishing rights, artist recordings and songwriters' rights," the board said in its statement.It said the bookbuild was expected to close no later than 1630 BST on 31 August.